A permanent account number is a unique alfa-numeric number allotted to every person who applies for it or some time allotted by the Income-tax department. The purpose of the number is to identify each person for the purpose of tax activities and income tax calculation.

PAN card is compulsory for:-

• To file an income tax return.
• To claim a refund of tax.
• Opening a bank account.
• Making any big cash transaction e.g. cash deposit in the bank, making any cash payment, Etc.
• In many banks, PAN cards and ITRs are compulsory for loans and other processing.
• For assisting big value transactions at Hospital, Jewellery shop, Property, Vehicle, foreign tour etc.
• Demate account.

A PAN card contains:

• Unique Alfa-numeric number – PAN number
• Name
• Father’s name
• Date of birth
• Photo
• Signature

The following person can have a PAN number:

• Association of persons
• Body of Individuals
• Company
• Firm
• Government
• HUF
• Local Authority
• Individual or Person
• Trust
• Artificial Judicial person

As per the IT Department following person needs to have a PAN card:

• If you are required to file an Income tax return by law.
• If your business turnover is more than 5 lakhs.
• If you are making import or export.
• Trust
• Company
• Registered association/organisation.