Permanent Account Number (PAN) is necessary for a host of transaction, including when you deposit cash at a bank. Cheque deposits may not entail one to write the PAN number, but, for cash deposits it is a must.

If you are depositing an amount in excess of Rs 50,000 in the bank you have to mention the PAN number on the pay-in slip.

It's also important to remember that one should mention the PAN number in case of a fixed deposit as well. In case you do not, then the bank will cut tax deducted at source (TDS) at 20 per cent if the amount of interest is in excess of Rs 10,000.

If you do mention your PAN number and the amount of interest on fixed deposit exceeds Rs 10,000 TDS will be cut only at 10 per cent.

In case the amount of interest earned on a fixed deposit is less than Rs 10,000 there is no TDS that is applicable currently.

Use of PAN Card

It is important to note that PAN card is needed in case of a host of transactions and hence it is very necessary to obtain one. An individual needs a PAN card when he has to file an income tax return. One cannot file an income tax return without a PAN card. High value transactions like purchase of property and purchase of large sums of jewellery would also need a PAN card.

You would also need a PAN card to open a bank account, applying for a credit card etc.

Read steps to link your PAN card to aadhar card here

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