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

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.

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