With effect from 1 January 2016, you would have to furnish your Permanent Account Number (PAN) for all transactions above Rs 2 lakhs, irrespective of the mode of payment adopted. This decision by the Indian Finance Ministry is a relaxation from the initial proposal made by Arun Jaitley during the 2015-16 Budget, wherein he motioned to make PAN details compulsory for sale or purchase of any item above Rs 1 lakh.
The Central Board of Direct Taxes (CBDT) asserted on Tuesday, “The government has received numerous representations from various quarters regarding the burden of compliance this proposal will entail. Considering the representations, PAN will be required for transactions of an amount exceeding Rs 2 lakh regardless of the mode of payment.”
Besides, the Finance Ministry has rationalised monetary limits for specific transactions that require mandatory quoting of PAN. Quoting PAN details is a requisite to open all bank accounts except the Jan Dhan. Landline and mobile connections will also not require quotation of PAN anymore.
Get Your Free Credit Report with Monthly Updates Check Now
MANDATORY QUOTING OF PAN CARD
|Nature of transaction||Existing requirement||New requirement|
|Immovable property||Transactions worth Rs. 5 lakh or more||Sale/purchase exceeding Rs. 10 lakhs|
|Time deposit||Exceeding Rs. 50,000/- with any bank||Deposits with co-operative banks, post office, Nidhi, NBFC will also need PAN, deposits aggregating Rs. 5 lakh or more per year will need PAN|
|Opening of new bank account||All new accounts||Jan Dhan excluded|
|Installation of cellphone/telephone connections||All instances||Discontinued|
|Hotel/restaurant bills||Payments exceeding Rs. 25,000/-||Payments exceeding Rs. 50,000/-|
|Foreign travel||Cash payment in connection with foreign travel of an amount exceeding Rs. 25,000/- including forex purchase||Cash payment in connection with Foreign travel of an amount exceeding Rs. 50,000/- including forex purchase|
|Share of companies||Share purchases worth Rs. 50,000/- and more||Buying or selling shares worth Rs. 1 lakh of unlisted companies. Opening a demat account.|
|Purchase or sale of goods and services||No requirement||Purchase or sale of any good or service exceeding Rs. 2 lakh per transaction|
|Cash cards/pre-paid instruments under Payment and Settlement Act||No requirement||Cash payment aggregating to more than Rs. 50,000/- a year|