Importance of PAN card

1. Quoting of PAN is also required for setting up a time deposit - or fixed deposit - exceeding Rs.
50,000 with a financial institution. Also, a cash deposit exceeding Rs. 50,000 in a post office
savings account requires PAN, according to the taxman.

2. Payment to hotels and restaurants against bills above Rs. 25,000 at any one time requires
furnishing of PAN card details.

3. Furnishing of PAN is also mandatory for a contract valued above Rs. 1 lakh for sale or purchase
of securities, and payment of Rs. 50,000 or more to a mutual fund for purchase of its units.

PAN card rules for taxpayers

4. PAN is required for payment in cash for purchase of a bank draft, pay order or banker's cheque
for an amount of Rs. 50,000 or more in a day, according to the Income Tax Department.

5. The personal identification number issued by the Income Tax Department is also mandatory for
deposit of cash amount to Rs. 50,000 and above in a bank in a day.

6. Quoting of PAN is also compulsory for making an application to obtain a credit or debit card.

7. Payment of an amount of Rs. 50,000 or more to a company for acquiring its shares, or to a
company/institution for acquiring its debentures or bonds also requires quoting of PAN.

8. Besides, payment of Rs. 50,000 or more in a year as life insurance premium also requires PAN.

9. Meanwhile, the Supreme Court has said that linking of PAN with Aadhaar is mandatory for
filing of income tax returns.

10. Applications for obtaining a PAN can be made in both offline and online modes. In the online
mode, the applicant registers his or her request through the website of securities depository NSDL
(National Securities Depository Limited) or financial service provider UTIITSL (UTI Infrastructure
Technology And Services Limited)