We report experimental observation of the Planar Hall effect (PHE) in a type-II Dirac semimetal PtTe$_2$. This unusual Hall effect is not expected in nonmagnetc materials such as PtTe$_2$, and has been observed previously mostly in magnetic semiconductors or metals. Remarkably, the PHE in PtTe$_2$ can be observed up to temperatures near room temperature which indicates the robustness of the effect. This is in contrast to the chiral anomaly induced negative longitudnal magnetoresistance (LMR), which can be observed only in the low temperature regime and is sensitive to extrinsic effects, such as current jetting and chemical inhomogeneities in crystals of high mobility. Planar Hall effect on the other hand is a purely intrinsic effect generated by the Berry curvature in Weyl semimetals. Additionally, the PHE is observed for PtTe$_2$ even though the Dirac node is $approx 0.8$~eV away from the Fermi level. Thus our results strongly indicate that PHE can be used as a crucial transport diagnostic for topological character even for band structures with Dirac nodes slightly away from the Fermi energy.