Quoting PAN (Permanent Account Number)

PAN (Permanent Account Number) is a unique alphanumeric identifier issued by the Income Tax Department to taxpayers in India.

Quoting PAN means providing this number in financial transactions or tax filings as mandated by law.

Key Features:

• Unique Identification PAN is a 10-character alphanumeric code unique to each individual or entity.
• It helps in tracking income, taxes paid, and financial transactions. 

Mandatory Usage:

PAN must be quoted in: Filing income tax returns (ITR) High-value financial transactions, such as:

• Property purchase Bank deposits or withdrawals above specified limits
• Purchase of securities
• Sale or purchase of vehicles
• Purpose Prevents tax evasion and money laundering. 

Facilitates linking of income and taxes across multiple sources. Simplifies processing of returns, refunds, and assessments. Entities Covered Individuals, companies, partnership firms, LLPs, trusts, and other entities are required to obtain PAN if their taxable income or transactions exceed threshold limits.

Importance Provides a single identifier for all tax-related activities. Enhances transparency and accountability in financial transactions. Ensures compliance with tax laws and smooth administration of income tax.

Example: An individual buys property worth ₹60 lakh. Quoting PAN is mandatory for registration and reporting this transaction to the tax authorities.