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quoting of PAN number in various transactions    Click here to Write Reply
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what are various cases / transactions where quoting of PAN is mandatory

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Post by - agam singh , Mar 21 2018 11:28PM Last Post By - ramesh bhatia Mar 21 2018 11:30PM


Reply by - ramesh bhatia , Mar 21 2018 11:30PM

quoting of PAN no. is mandatory for various transactions as mentioned below:

QUOTING OF PAN IS MANDATORY FOR TRANSACTION ABOVE RS. 2 LACS

 

In order to achieve a two-pronged target of curbing the circulation of black money and widening tax base the government has recently notified changes in the monetary limits that will require mandatory quoting of PAN. The finance ministry has also rationalized the monetary limits for certain transactions requiring mandatory quoting of PAN. “In dealing with domestic black money transactions dealing with cash of more than Rs.200000 will require submission of PAN details” Finance Minister Shri Arun Jaitley told the Lok Sabha earlier this month while presenting his ministry’s supplementary demands for grants.

As per CBDT notification PAN will be required for transactions above Rs. 200000 regardless of the mode of payment. Any false declaration of PAN could also land an individual behind bars or a company liable to prosecution that includes a jail term of up to seven years and a fine.

 

SL NO

NATURE OF TRANSACTION

MANDATORY QUOTING OF PAN RULE 114B

EXISTING REQUIREMENT

NEW REQUIREMENT

 

1

Immovable property

Sale/ purchase valued at Rs.5  lakh or more

i.                    Sale/ purchase exceeding Rs.10 lakh;

ii.                  Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.

2

Motor vehicle (other than two wheeler)

All sales/purchases

No change

3

Time deposit

Time deposit exceeding Rs.50000/- with a banking company

i.      Deposits with Co-op banks Post Office Nidhi NBFC companies will also need PAN;

ii.    Deposits aggregating to more than Rs.5 lakh   during the year will also need PAN

4

Deposit with Post Office Savings Bank

Exceeding Rs.50000/

Discontinued

5

Sale or purchase of securities

Contract for sale/purchase of a value exceeding Rs.1 lakh

No change

6

Opening an account (other than time deposit) with a banking company.

All new accounts.

i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts);

ii. Co-operative banks also to comply

7

Installation of telephone/ cellphone connections

All instances

Discontinued

8

Hotel/restaurant bill(s)

Exceeding Rs.25000/- at any one time (by any mode of payment)

Cash payment exceeding Rs.50000/-.

9

Cash purchase of bank drafts/ pay orders/ banker’s cheques

Amount aggregating to Rs.50000/- or more during any one day

Exceeding Rs.50000/- on any one day.

10

Cash deposit with banking company

Cash aggregating to Rs.50000/- or more during any one day

Cash deposit exceeding Rs.50000/- in a day.

11

Foreign travel

Cash payment in connection with foreign travel  of an amount exceeding Rs.25000/- at any one time (including fare payment to travel agent purchase of forex)

Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50000/- at any one time (including fare payment to travel agent)

12

Credit card

Application to banking company/ any other company/institution for credit card

No change.

Co-operative banks also to comply.

13

Mutual fund units

Payment of Rs.50000/- or more for purchase

Payment exceeding Rs.50000/- for purchase.

14

Shares of company

Payment of Rs.50000/-  or more to a company for acquiring its shares

i.      Opening a demat account;

ii.    Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.

15

Debentures/ bonds

Payment of Rs.50000/- or more to a company/ institution for acquiring its debentures/ bonds

Payment exceeding Rs.50000/-.

16

RBI bonds

Payment of Rs.50000/-or more to RBI for acquiring its bonds

Payment exceeding Rs.50000/-.

17

Life insurance premium

Payment of Rs.50000/- or more in a year as premium  to an insurer

Payment exceeding Rs.50000/- in a year.

18

Purchase of jewellery/bullion

Payment of Rs.5 lakh or more at any one time or against a bill

Deleted and merged with next item in this table

19

Purchases or sales of goods or services

No requirement

Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.

20

Cash cards/ prepaid instruments issued under Payment & Settlement Act

No requirement

Cash payment aggregating to more than Rs.50000 in a year.