WHAT IS PAN?
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 CBDT (Central Board of Direct Taxes).
PAN is mandatory for financial transactions such as receiving salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more. It also serves as an identity proof in everyday financial transactions.
WHERE QUOTING PAN IS NECESSARY
All existing assessees or taxpayers or persons who are required to furnish a return of income, either on behalf of self or others, must obtain PAN. Any person, who intends to enter into economic or financial transactions where quoting PAN is mandatory, must also obtain PAN.
Sale/Purchase of Immovable Property valued more than ₹ 10 lakh
Sale/Purchase of all four-wheeler vehicles
Time Deposit with banks aggregating more than ₹ 5 lakh per annum
Opening an account with a banking company
Cash purchase of bank drafts/pay orders/banker’s cheques exceeding ₹ 50,000 a day
Payment of mutual funds exceeding ₹ 50,000
Payment of Life Insurance Premium exceeding ₹ 50,000 a year
Purchase/Sales of goods/services exceeding ₹ 2 lakh per transaction
For getting Subsidy on CNG Gas Cylinders
So apply for your PAN soon if you haven't already.