PAN CARD uses


Permanent Account Number is a number allotted to a person by the Assessing Officer for the purpose of identification. PAN of the new series has 10 alphanumeric characters and is issued in the form of laminated card with photograph. PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department. Section 139A of the Income Tax Act provides that every person whose total income exceeds the maximum amount not chargeable to tax or every person who carries on any business or profession whose total turnover or gross receipts exceed Rs.5 lakhs in any previous year shall apply for PAN. Besides, any person not fulfilling the above conditions may also apply for allotment of PAN.
Transactions in which quoting of PAN is Mandatory

Sale or purchase of immovable property valued at Rs 5 lakh or more
Sale or purchase of a vehicle other than a two wheeler
Payment to hotels or restaurants an amount exceeding Rs 25,000 at any one time
Payment in cash an amount exceeding Rs 25,000 in connection with travel to any foreign country
Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
Payment of an amount of Rs 50,000 or more to the Reserve Bank of India for acquiring bonds
Payment of an amount of Rs 50,000 or more to a company or an institution for acquiring bonds or debentures
Payment of an amount of Rs 50,000 or more to a company for acquiring shares
Any mutual fund purchase
Deposit exceeding Rs 50,000 with any single banking institution in 24 hours
Payment exceeding Rs 5 lakh for purchase of bullion and jewellery
Apart from above PAN is mandatory for payment of direct taxes, to file income tax returns and to avoid deduction of tax at higher rate.

Source: Income Tax Act, Rules, NSDL, UTI