You will have to flash your permanent account number (PAN) for any transaction of over Rs 2 lakh regardless of mode of payment. The government has issued a press release to give effect to the budget proposal, intended to check domestic black money, apart from modifying the rules for PAN requirement for other transactions as well.
The monetary limits for quoting PAN has raised to Rs 10 lakh from Rs. 5 lakh for sale or purchase of immovable property, to Rs 50,000 from Rs 25,000 in the case of one time hotel or restaurant bills and to Rs 1 lakh from Rs 50,000 for purchase or sale of shares of an unlisted company.
This was one of the measures proposed by the government in the budget to curb domestic black money.
The budget had proposed a Rs 1 lakh limit. Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs1 lakh.
A higher limit has been notified following representation from various quarters.
Considering the representations, it has been decided that quoting of PAN will be required fortransactions of an amount exceeding Rs.2 lakh regardless of the mode of payment.
Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity, the statement said. The new rules will come into effect from January 1, 2016.
The above changes in the rules are expected to be useful in widening the tax net by non-intrusive methods. They are also expected to help in curbing black money and move towards a cashless economy,”.
There will not be any requirement of PAN for Jan Dhan accounts as well.
To view the press release, click here