PAN card is compulsory for all financial transactions. This includes receiving taxable salary, sale or purchase of assets above the specified limits, buying and selling mutual funds, stocks, receiving professional fees, and much more.
You even need a PAN card to open a bank account, apply for a loan, or buying a car over a certain limit. At times you need PAN card when applying for a passport or visa.
PAN card is a universal identification key that helps keep a track of all financial transactions, preventing cases of tax invasion.