Permanent Account Number (PAN) is unique alphanumeric

combination issued to all juristic entities identifiable under the Indian

Income Tax Act 1961. It is issued by the Indian Income Tax
Department under the auspices of the Central Board for Direct Taxes
(CBDT) and is almost equivalent to a national identification number.
It also serves as an important ID proof.

This number is almost mandatory for financial transactions such as

opening a bank account, receiving taxable salary or professional fees,
sale or purchase of assets above specified limits.

The transaction in which quoting of PAN is mandatory:

 Sale or purchase of immovable property valued at Rs. 500,000 or

more.
 Sale or purchase of a motor vehicle requiring registration other
than two-wheelers.
 A time deposit of more than Rs. 50, 000 with any banking
company and deposit of more than Rs. 50,000 with post-office
savings bank.
 Contract of sale or purchase of securities exceeding Rs. 1 lakh in
value, including shares, bonds, debentures, derivatives, units and
government securities.
 Application for installation of telephone, including cellular
telephone.
 Payment to hotels and restaurants against bills exceeding Rs.
25,000 at any one time.
 Opening a bank account.
 For getting loan
 For registration of sales tax/Vat Number.
 For registration of sales Tax number.
 To get excise registration.
 For getting a passport or a visa
 To receive money from abroad.
 Opening of demat account.
 Application for issue of a credit card.
 PAN number acts as an Identity proof, showing your relation to
India.
 A cash deposit of Rs. 50,000 or more with any bank during any
one day.
 Payment of Rs. 50,000 or more to a mutual fund for purchase of
units.