Transactions Where PAN Quoting is Mandatory

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Now you all know PAN and AADHAR Is mandatory for all Government communication and work. Here are some of the transactions where PAN is mandatory even there is not tax involvement. You can not avoid PAN if you want to do the following transaction.

Sl. No.TransactionRequired of PAN card
1Purchase / sale of motor vehicles as defined under the Motor Vehicles Act, 1988, where a registration is mandatory from the respective authority. Does not includes two wheelersUnder all transactions
2Making payment in a hotel/ restaurant against an outstanding bill for oncePAN Card to be quoted, if the total amount of bill is equal to INR 50, 000 or more.
3Application for a credit/ debit card to any banking companyUnder all transactions
4Opening a new account with any banking company, except for Basic Savings account and time deposit accountUnder all transactions
5Opening a new DEMAT accountUnder all transactions
6Depositing money with a banking companyPAN Card to be quoted, if the amount of deposit is equal to INR 50, 000 or more in a single day.
7Payment made to the Reserve Bank of India (RBI) against bond issuedPAN Card to be quoted, if the bond value is equal to INR 50, 000 or more.
8Payment made under purchase of mutual fundsPAN Card to be quoted, if the mutual fund value is equal to INR 50, 000 or more.
9Payment made towards acquisition of shares/ debentures of a companyPAN Card to be quoted, if the acquisition value is equal to INR 50, 000 or more.
10Payments made while travelling foreign or purchase of foreign currency for one time.PAN Card to be quoted, if the payment is made in cash and value is equal to INR 50, 000 or more.
11Contract for purchase/sale of securities other than shares as per SCRAPAN Card to be quoted, if the payment/ receipt value is equal to INR 1, 00, 000 or more.
12Purchase of pay orders/ bank drafts/ banker’s cheque from a banking companyPAN Card to be quoted, if the payment is made in cash and value is equal to INR 50, 000 or more in one single day.
13Payments made towards pre-paid payment instruments to co-operative bank or a banking company.PAN Card to be quoted, if the payment is made in cash/ bank draft and value is equal to INR 50, 000 or more in one single year
14Time deposit with a banking company/ non-banking financial company/ post office/ Nidhi (as per Companies Act 2013)PAN Card to be quoted, if the payment is equal to INR 50, 000 or aggregating to more than INR 5, 00, 000 in one single year.
15Payment made as Life Insurance PremiumPAN Card to be quoted, if the aggregate payment is equal to INR 50, 000 or more in one single year.
16Sale/ Purchase of shares of a non-listed company in a recognized SE (Stock Exchange)PAN Card to be quoted, if the receipt/ payment value is equal to INR 1, 00, 000 per transaction.
17Purchase/ Sale of an immovable propertyPAN Card to be quoted, if the payment/ receipt value is equal to INR 10, 00, 000 (valuation taken by Stamp Authority will also be considered.)
18Purchase/ Sale of goods/ property not mentioned in above 1 to 17PAN Card to be quoted, if the receipt/ payment value is equal to INR 2, 00, 000 per transaction.
19Deposit in cash with bank or co-operative bank or banking institutionPAN Card to be quoted, if the deposit amount exceeding Rs. 50,000 during any one day or aggregating to more than Rs. 2,50,000 during the period 9-11-2016 to 30-12-2016. 1

So, before you start rolling your investment plans for this year, make sure you have the right knowledge about quotation of your PAN Card. At any point of time, if you feel confused or have a doubt regarding any of the section covered above, feel free to ask us. Having the right knowledge will allow you to plan your investments better and along with taking better decision to save taxes for the upcoming period. For more details on tax-related official notifications, stay in touch with us.

Notes:

The requirement of quoting PAN shall not apply to

  • Central /State Government and Consular Offices,
  • Non-residents in respect of transactions referred to in clauses given under rule 114B (3rd provision)
  • According to Circular No.27/2017 dt. 3-11-2017, it is clarified that cash sale of agricultural produce by its cultivator to a trader for an amount less than Rs.2 lakh will not require the cultivator to quote his PAN/furnish form No.60.
  • Any person entering into a specified transaction and not having PAN, shall furnish a declaration in Form 60 in paper form/electronically under electronic verification code. Filling of all fields in Form No. 60 shall be mandatory w.e.f. 1.4.2016.

 

 

  1. Inserted vide I.T. (30th Amdt.) Rules, 2016
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