PAN refers to the, “Permanent Account Number”, which is issued by the Income Tax Department of India. PAN is an unique alpha numeric identification number issued to all Indian Citizens and its mandatory for certain financial transactions as per the Indian Income Tax Act. PAN is useful to track huge financial transaction of individual and companies that evade income taxes.
PAN AND ITS USES
To file Income tax returns PAN is mandatory.
For sale and purchase of immovable property.
Cash transactions above RS. 50000/- in Banks.
For opening demat account and share trading.
However people having agriculture income and not having any income tax are exempted from quoting PAN number. But they need to provide a declaration Form 16.
Application for PAN can be downloaded from the link: www.incometaxinida.gov.in