INCOME TAX REQUIREMENT FOR MANDATORY QUOTING OF PERMANENT ACCOUNT NUMBER (PAN)

Posted By on January 5, 2016

The government has rationalised the requirements of financial transactions, where quoting of Permanent Account Number (PAN) is mandatory w.e.f. 01-01-2016 by amending the Rules 114B of Income Tax Rules.

We are noting below the comparative analysis of the requirements for mandatory quoting of PAN for various transactions:-

S.NO.

NATURE OF TRANSACTION

MANDATORY QUOTING OF PAN(RULE 114B)

REQUIREMENT TILL 31-12-15

REQUIREMENT w.e.f. 01-01-2016

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 sale/purchases No change
3 Time deposits Time deposit exceeding Rs. 50,000 with a banking company i)Deposit With co-op banks, Post office, Nidhi, NBFC, companies will also need PANii)Deposit aggregating to more than Rs. 5 Lakh During the year will also need PAN
4 Deposit withPost office saving bank Exceeding Rs.50,000 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 saving Bank Deposit Account Excluded (No PAN requirement for opening  these accounts);ii)Co-operative banks also to comply
7 Installation of telephone/cell phone connection All instances Discontinued
8 Hotel/restaurant bill(s) Exceeding Rs. 25,000 at any one time (by any mode of payment) Cash payment exceeding Rs. 50,000
9 Cash purchase of bank drafts/pay orders/banker’s cheques Amount aggregating to Rs.50,000 or more during any one day Exceeding Rs.50,000 on any one day
10 Cash deposit with banking company Cash aggregating  to Rs.50,000 or more during any one day Cash Deposit  exceeding Rs.50,000 in a day
11 Foreign travels Cash payment in connection with foreign travels of an amount exceeding Rs.25,000 at any one time (including fare, payment to travel agent, purchase of forex) Cash payment in connection with foreign travels or purchase of foreign currency of an amount exceeding Rs.50,000 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 changeCo-operative banks also comply
13 Mutual fund unit Payment of Rs.50,000 or more for purchase Payment exceeding Rs.50,000 for purchase
14 Share of company Payment of Rs.50,000 or more to a company for acquiring its share i)Opening a  Demat accountii)Purchase or sale of shares of an unlisted company for an amount exceeding Rs. 1 lakh per transaction
15 Debenture/bonds Payment of Rs.50,000 or more to a company/institution for acquiring its debentures/bonds Payment exceeding Rs.50,000
16 RBI bonds Payment of Rs.50,000 or more to RBI for acquiring its bond Payment exceeding Rs.50,000
17 Life insurance premium Payment of Rs.50,000 or more in a year as premium to an insurer Payment exceeding Rs.50,000 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 Purchase or sale 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.50,000 in a year

 

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