Permanent Account Number (PAN)
Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the India Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.
PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits and returns of income/wealth/gift/, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.
It is also compulsory to quote PAN in all documents pertaining to the following financial transactions:-
(a) Sale or purchase of any immovable property valued at five hundred thousand 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 hundred thousand rupees for sale or purchase of securities.
(f) Opening a bank account.
(g) Making an application for installation of a telephone connection (including a cellular telephone connection).
(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.