PAN, or
permanent account number, is a unique 10-digit alphanumeric identity allotted
to each taxpayer by the Income Tax Department under the supervision of the
Central Board of Direct Taxes. It also serves as an identity proof. PAN is
mandatory for financial transactions such as receiving taxable salary or
professional fees, sale or purchase of assets above specified limits, buy
mutual funds and more. The following are the transactions where Pan number is necessarily quoted.
a)
Sale or
purchase of any immovable property valued at five lakh rupees or more
b) Sale or purchase of a motor vehicle or vehicle, (the sale
or purchase of a motor vehicle or vehicle does not include two wheeled
vehicles, inclusive of any detachable side-car having an extra wheel, attached
to the motor vehicle)
c)
A time
deposit, exceeding fifty thousand rupees, with a banking company
d)
A deposit,
exceeding fifty thousand rupees, in any account with Post Office Savings Bank
e)
A contract
of a value exceeding one lakh rupees for sale or purchase of securities
f)
Opening a
bank account
g) Making
an application for installation of a telephone
h)
Payment to
hotels and restaurants against their bills for an amount exceeding twenty-five
thousand rupees at any one time
i) Payment in cash for purchase of bank drafts or
pay orders or banker’s cheques for an amount aggregating fifty thousand rupees
or more during any one day
j) Deposit in cash aggregating fifty thousand rupees or more with a
bank during any one day
k) Payment
in cash in connection with travel to any foreign country of an amount exceeding
twenty-five thousand rupees at any one time
