Permanent Account Number (PAN) is a ten-digit alphanumeric number allotted by Income Tax Department. Normally it is, issued in the form of a laminated card, by the IT Department.
It is mandatory w.e.f.1 January 2005 to quote PAN on challans for any payments due to Income Tax Department. Moreover, now it is mandatory to quote PAN on return of income, all correspondence with any income tax authority.
In all documents pertaining to financial transactions notified from time-to-time by the Central Board of Direct Taxes.it is necessary to quote PAN. Some of the transactions where it is compulsory to quote PAN are as follows-
Sale and purchase of immovable property or motor vehicle;
Payments in cash, of amounts exceeding Rs. 25,000/-to hotels and restaurants;
In connection with travel to any foreign country.
For obtaining a telephone or cellular telephone connection.
For making a time deposit exceeding Rs. 50,000/- with a Bank Post Office;
depositing cash of Rs. 50,000/- or more in a Bank.
