1. PAN = Permanent Account Number
2. A/c no. of what? What’s this number about? = It’s basically your identity card with the Govt of India, similar to iCards of colleges, schools and offices etc.
3. Now the use:
For us personally it acts like an authentic proof of our identity which is undeniably accepted everywhere in India even at those places where Govt doesn’t accept their own documents as id proof e.g. When I went to RTO office in Mumbai for my vehicle registration they didn’t accept my driving license (issued by them only) as ID proof!! While they happily accepted PAN card.
For official, business and other commercial and Govt purposes – Govt has mandated a lot of places where quoting of PAN is compulsory like say for opening bank account, payment of taxes, filing tax returns, registering a new business, purchase of property, payment in cash after certain limit etc etc.
4. Use for Govt. – It helps Govt to keep track of every move we take in this financial and commercial world and the Govt uses it to check and control tax evasion, money laundering, use of cash for legitimate business purposes etc etc.