PAN mandatory transactions!

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PAN is mandatorily required in all the following transactions:

  • Payment of bill to hotel and restaurants one time in cash of an amount exceeding Rs 50 thousand
  • Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time in cash of an amount exceeding Rs 50 thousand.
  • Payment exceeding Rs 50 thousand to a mutual fund for purchase of units
  • Payment to a company or an institution for acquiring debentures or bonds issued by it of an amount exceeding Rs 50 thousand.
  • Payment to the Reserve Bank of India, for acquiring bonds issued by it of an Amount exceeding Rs 50 thousand.
  • Purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank (including any bank or banking institution)in cash for an amount exceeding Rs 50 thousand during any one day.
  • Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange of an amount exceeding Rs 1 lakh per transaction.
  • Sale or purchase of any immovable property of an Amount exceeding Rs 10 lakhs or valued by stamp valuation authority referred to in section 50C of the Income Tax Act 1961 at an amount exceeding Rs 10 lakhs.
  • Sale or purchase, by any person, of goods or services of any nature other than those mentioned above, if any, of an amount exceeding Rs 2 lakhs per transaction.
  • Opening an account with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act).
  • Sale & purchase of motor vehicle other than two wheelers
  • Application to bank or other company/institution for issue of credit/debit card.
  • Opening of a demat account with a depository, participant, custodian of securities or any other person with SEBI
  • A time deposit with,—
  • a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act);
  • a Post Office;
  • a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013);
  • a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public.
  • of an amount  exceeding Rs 50 thousand or aggregating to more than Rs 5 lakhs during a financial year.
  • Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938) of an amount aggregating to more than fifty thousand rupees in a financial year.
  • A contract for sale or purchase of securities (other than shares) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956(42 of 1956) of an amount exceeding Rs 1 lakh per transaction.

PAN is also required to be quoted on all:

  1. Correspondence with tax department,
  2. Tax challans,
  3. Income-tax / TDS / TCS Returns
  4. Correspondence, bills, vouchers and other documents which are send by deductee of tax to deductor,

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