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PAN is a ten-digit alphanumeric number issued by the Department of Income Tax, Government of India.  PAN was introduced by the Income Tax Department to link all financial transactions which cross certain  limits, payment of taxes, assessment of income tax, tax demand etc. relating to an assesse of Income Tax.  It is mandatory to submit the PAN or the affidavit, undertaking that the income of the applicant is not  crossing the limit prescribed by the Income Tax to have a PAN, for opening bank accounts. Most of the transactions above certain limits made it compulsory to quote PAN, which includes, sale or  purchase of immovable property valued at five lakh rupees or more, sale or purchase of motor vehicle  expect two wheelers, fixed deposits in a banking company or Post office above Rs 50000/- etc.  Applications for PAN can be submitted through online; some banks, mutual fund houses etc. are also  offering the services to their customers to apply for PAN through them. Proof of Identity and Proof of Address documents are required for applying to PAN. Please visit the link www.tin.tin.nsdl.com/pan/ for submitting online application for PAN. You can find  details about the nearest PAN servicing centre on this website.
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