Quoting of PAN – Amendment of Rules since 01 Jan 2016 – Revised Scenario

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Department of Income tax, Government of India revised the rules called the Income-tax (22nd Amendment) Rules, 2015 to collect information of certain types of transactions from third parties in a non-intrusive manner. The department has already made it mandatory under Rule 114B of the Income-tax Rules to quote PAN where the transactions exceed a specified limit. In the revised scenario, to curbing the circulation of black money and widening of tax base, Government amended Rule 114B to enhance the monetary limits of certain transactions which require quoting of PAN, irrespective of the mode of payment. Now, every person would be required to quote his PAN Card details in all the documents in the following transactions means sale or purchase of the following goods or sevices

  1. Sale or purchase of a motor vehicle or vehicle (which require registration with the authority) except two wheelers.
  2. Application for Credit Card or Debit Card to any Banking institution.
  3. Opening of a new account with Bank or FIs except basic saving bank account or time deposit account.
  4. Opening of a Demat account.
  5. Making payment of a hotel bill or restaurant bill if equal to or exceeds Rs. 50,000.00, if payable in Cash.
  6. Deposit Rs. 50,000.00 or more in a day to any Bank Account.
  7. Payment to RBI for issue of Bond if bond value equals to Rs. 50,000.00 or more.
  8. Purchase of Mutual Fund of value equals to Rs. 50,000.00 or more.
  9. Purchase of foreign currency in one time in India or abroad while travelling, if value equals to Rs. 50,000.00 or more and in cash.
  10. Purchase of Pay order/Demand Draft/Banker’s Cheque of Rs. 50,000.00 or more, if through Cash.
  11. Payment for acquisition of Shares or Debentures of a Company, if value is equal to Rs. 50,000.00 or more.
  12. Time deposit of Rs. 50,000.00 (one time) or aggregating to exceeds Rs. 5,00,000.00 in a year with any Bank, NBFC, Post Office or Nidhi.
  13. Payment of Life Insurance Premium to the insurer, if exceeds Rs. 50,000.00 in a financial year.
  14. Purchase/Sale of shares of any non listed company, if amount exceeds Rs. 1,00,000.00 per transaction.
  15. Purchase/Sale of any immovable property, if transaction amount and/or valuation taken by Stamp Authority is equal to or exceeds Rs. 10,00,000.00.
  16. Contract for Purchase/Sale of securities (other than Shares), if payment/receipt value is equal to Rs. 1,00,000.00 or more.
  17. Payment through Cash/Bank Draft/Banker’s Cheque for one or more pre-paid payment instruments to a banking company or a co-operative bank or to any other company or institution, if equal to Rs. 50,000.00 or more.
  18. Purchase/Sale of any goods or services not mentioned above, if transaction value is equal to Rs. 2,00,000.00 or more.

Note :

  1. In case of a minor, who does not have any income chargeable to income-tax shall quote the PAN of his father or mother or guardian in the documents pertaining to the said transactions.
  2. For those, who does not have any PAN shall make a declaration in Form No. 60 giving therein the particulars of such transaction.

The Notification is available on the website of the Department www.incometaxindia.gov.in.

Now, before your next transaction make sure you have the right knowledge about quotation of your PAN Card. For more details on tax-related official notifications, stay in touch with us.

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