As the Government has now made it compulsory for all the investors dealing in financial transaction to obtain a PAN Card for the same, the opportunity has come as a boon for several finance companies operating in the country.

Notably, the number of walk-ins has increased significantly over a period of time since the announcement was made public. Bajaj Capital for that matter that receives around 8,000-10,000 PAN applications a month, has seen a significant 25% jump in this segment this month.

Under the old scenario, the tax authorities used to cut 10% on the income earned on fixed deposits but since the announcement came into picture, effective April 1, 2010, if the depositor submits only Form 15 H and doesn't declare PAN, the tax deduction would be 20%.

It has been noted over the years the investors have been taking the advantage of the loophole in the process by doing multiple deposits at various banks to avail tax breaks. However, with the new process in picture there is expected a considerable rise in the taxable population in the country.