PAN Card is not only meant for tax purposes. Since it carries your photograph, name and address, it is accepted as Proof of Identity (POI) nation-wide. Here are some other reasons why you must have a PAN Card:
Pan Card is required to pay TDS (Tax Deducted at Source). If you do not quote your PAN number, you may end up paying tax twice.
Needed for Financial Transactions:
A valid PAN Card is needed for all important as well as big-ticket financial transactions such as :
applying for a landline or cell phone connection,
cash payment of more than Rs 25,000 for foreign travel in one day,
cash payment of more than Rs 50,000 in one day for bank drafts, cheques or pay orders,
depositing more than Rs 50,000 for a fixed time in a bank,
investing in mutual funds or securities,
opening a demat or bank account, and
purchase and sale of property and motor vehicles.
Purchase of Property by NRIs: NRIs need to mention their PAN Card number to engage in a business in India or buy a property here without having to file tax returns here.
Correspondence for Income Tax Department: It is mandatory to mention your PAN Number on all interaction with the IT department.