The Ministry of Finance issued a notification on 30 December 2015 making Permanent Account Number (PAN) mandatory for various transactions from 1 January 2016. The move is aimed at curbing the circulation of black money and expanding the tax base of the government. The notification states that if a person not having a PAN card enters into any transaction mentioned in the notification, they will have to make a declaration in Form No.60 giving therein the particulars of such transaction.
Here is a brief list of transactions for which quoting of PAN card has been made mandatory:
1. Cash payment of hotel or foreign travel bills exceeding Rs 50,000
2. Purchase of jewellery of over Rs 2 lakhs
3. Sale or purchase of motor vehicles (other than two wheelers)
4. Opening of a bank account (other than Basic Savings Bank Deposit Account]
5. Making an application for issuing of credit or debit card
6. Opening of Demat accounts
7. Cash deposits of over Rs 50,000 in a bank account in a single day
8. Payment of over Rs 50,000 to a mutual fund for purchasing its units
9. Payment of over Rs 50,000 to a company or an institution for purchasing debentures or bonds issued by it
10. Payment of over Rs 50,000 to RBI for purchasing bonds issued by it
11. Fixed deposits of over Rs 50,000 or aggregating Rs 5 lakhs in a financial year with banks/post office/non-banking financial companies
12. Payment of life insurance premium of over Rs 50,000 in a financial year
13. Sale or purchase of goods or services of any nature other than those specified in this notification, which exceeds Rs 2 lakhs per transaction
The notification also states that if a minor, not having any income chargeable to income tax, enters into any of the transactions listed in the notification, they will have to quote the PAN of their father or mother or guardian.