The Permanent Account Number or PAN Card is issued by the Income Tax Department, to all those who are eligible to pay taxes in India. It is used by the department to keep a tab on the financial transactions conducted by taxpayers in order to verify information regarding your tax profile.
If you have to file taxes in India, having a PAN Card is mandatory. A PAN card may also necessary for entering into certain specific financial transactions. These include:
- Payment in cash to a hotel or restaurant against a bill/bills at any one time exceeding fifty thousand rupees.
- Payment in cash in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time exceeding fifty thousand rupees.
- Sale or purchase of any immovable property exceeding ten lakh rupees.
- Sale or purchase of goods or services of any nature exceeding two lakh rupees per transaction.
Read here for more information on PAN Card while filing taxes.