Why PAN is needed

1.      For Payment of Direct taxes.

2.      To file Income Tax Return.

3.      To avoid deduction of Tax at higher rate by the Deductors.

4.      To enter into specific transactions such as: 

(a)    Sale or purchase of any immovable property valued at five

      lakh rupees or more;

(b)   Sale or purchase of a motor vehicle or vehicle other than two wheeler;

(c)    Payment to Hotels and Restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time.

(d)   Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.

(e)    Payment of an amount of fifty thousand or more to RBI for acquiring Bonds.

(f)    Payment of an amount of fifty thousand or more to Company or Institution for accuiring Bonds and Debentures.

(g)    Payment of an amount of fifty thousand or more to Company for accuiring Shares.

(h)   Payment of an amount of fifty thousand or more to Mutual Funds for purchase of units.

(i)     Making an application for issue of credit card.

(j)     A time deposit, exceeding fifty thousand rupees, with a banking company.

(k)   Other transactions as per Rule 114B

(l)   Payment exceeding five lakh rupees for purchase of bullion and jewellery.