With effect from 1 January 2016, you would have to furnish your Permanent Account Number (PAN) for all transactions above Rs 2 lakhs, irrespective of the mode of payment adopted. This decision by the Indian Finance Ministry is a relaxation from the initial proposal made by Arun Jaitley during the 2015-16 Budget, wherein he motioned to make PAN details compulsory for sale or purchase of any item above Rs 1 lakh.
The Central Board of Direct Taxes (CBDT) asserted on Tuesday, "The government has received numerous representations from various quarters regarding the burden of compliance this proposal will entail. Considering the representations, PAN will be required for transactions of an amount exceeding Rs 2 lakh regardless of the mode of payment."
Besides, the Finance Ministry has rationalised monetary limits for specific transactions that require mandatory quoting of PAN. Quoting PAN details is a requisite to open all bank accounts except the Jan Dhan. Landline and mobile connections will also not require quotation of PAN anymore.
Nature of transaction Existing requirement
Immovable property Transactions worth Rs. 5 lakh or more
Time deposit Exceeding Rs. 50,000/-with any bank
Opening of new bank account All new accounts
Installation of cellphone All instances
/telephone connections
Hotel/restaurant bills Payments exceeding Rs. 25,000/-
Foreign travel Cash payment in connection with foreign travel of an amount exceeding Rs. 25,000/-including forex purchase
Share of companies Share purchases worth Rs. 50,000/-\and more
Purchase or sale of No requirement
goods and services
Cash cards/pre-paid No requirement and Settlement Act
Nature of transaction New requirement
Immovable property Sale/purchase exceeding Rs. 10 lakhs
Time deposit Deposits with co-operative banks,post office, Nidhi, NBFC will also need PAN, deposits aggregating Rs. 5 lakh or more per year will need PAN
Opening of new bank account Jan Dhan excluded
Installation of cellphone Discontinued
/telephone connections
Hotel/restaurant bills Payments exceeding Rs. 50,000/
Foreign travel Cash payment in connection with travel of an amount exceeding Rs. 25,000/- Foreign travel of an amount including forex purchase exceeding Rs. 50,000/- including forex purchase
Share of companies Buying or selling shares worth Rs. 1 lacs \and more lakh of unlisted companies. v Opening demat account.
Purchase or sale of Purchase or sale of any good or service exceeding Rs. 2 lakh per transaction
goods and services
Cash cards/pre-paid Cash payment aggregating to more than Rs. 50,000/- a year instruments under Payment
and Settlement Act
