Specified financial transactions in which quoting of PAN is mandatory now.
Hi Guys in this Article, we are going to learn about the area where it is mandatory to quote PAN or Permanent Account Number. If you don’t know the Meaning of Permanent Account Number (PAN) than you read our previous article (https://tax-india.in/what-is-pan-or-permanent-account-number-and-pan-card-structure-did-you-know-how-your-pan-card-number-is-generated-what-does-4th-letter-in-pan-card-stands-for/) in which we talk in details about PAN. Here, we Discuss about the specified financial transactions in which every person shall mandatory to quote Permanent Account Number (PAN) as per Income Tax Act,1961.
Every person shall quote his Permanent Account Number in all documents pertaining to the transactions specified below, namely:
- Opening a Demat Account.
- Opening an Account (Saving & Current) with a banking company (not being a time deposit).
- A Time Deposit with a Banking Company or a Co-Op. Bank, Post Offfce, Nidhi Company or a NBFC exceeding RS. 50,000 or aggregating to more than 5,00,000 during a Financial Year.
- Making an Application to any banking company for issue of a Credit Card.
- sale or purchase of any Immovable Property valued at more than RS. 10,00,000
- Sale or Purchase of a Motor Vehicle which requires registration by a registering authority. However, two wheeled vehicles are excluded.
- payment for one or more Pre-Paid Payment Instruments in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than RS. 50,000 in a financial year.
- Payment as Life Insurance Premium of an amount aggregating to more than 50,000 in a financial year.
- A Contract of value exceeding 1,00,000 for sale or purchase of securities (other than shares).
- Payment in cash to Hotels and Restaurants against their bills for an amount exceeding RS. 50,000 at any one time.
- Payment in cash for purchase of Bank Drafts or Pay Orders or Banker’s Cheques from a banking company for an amount exceeding RS. 50,000 during any one day.
- Payment in cash in connection with travel to any foreign country or purchase of any foreign currency of an amount exceeding RS. 50,000 at any one time.
- Payment of an amount of more than RS. 50,000 to a Mutual Fund for purchase of its Units.
- Payment of an amount exceeding RS.1,00,000 per transaction to a company not listed on a Recognised Stock Exchange for acquiring, shares issued by it.
- Payment of an amount of more than RS. 50,000 to a company or an institution for acquiring Debentures or Bonds issued by it.
- Payment of an amount of more than 50,000 to the RBI for acquiring Bonds issued by it.
- Deposit in cash with a banking company or co-operative bank or post office exceeding RS.50,000 during any one day or aggregating to more than RS.2,50,000 during the period 09.11.2016 to 30.12.2016.
- sale or purchase, by any person, of goods or services of any nature other than above of an amount exceeding RS.2,00,000 per transaction.
POINTS TO NOTE:
Further where a person, making an application for opening an account is a Minor and who does not have any taxable income, he shall quote the PAN of his Father or Mother or Guardian, as the case may be, in the document pertaining to the said
- Any person who does not have a PAN and who enters into any specified Financial transaction than shall make a Declaration in Form No. 60 giving therein the particulars of such transaction either in paper form or electronically in accordance with the procedures as may be specified.
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