why do we need pan card

A Permanent Account Number (PAN) is essential because it is a unique, ten-digit alphanumeric identifier issued by the Income Tax Department of India. It serves as a mandatory proof of financial identity for filing income tax returns and for tracking all your major financial transactions. You need a PAN for activities like opening a bank account, making investments, buying or selling property, and cash deposits exceeding a specified limit. It is vital for ensuring tax compliance and preventing tax evasion.