Quoting of PAN is Mandatory for opening Bank A/c, for purchase sale of Goods above Rs. 2 Lakh, few cash transactions above Rs. 50,000/- and much more

Quoting of PAN is Mandatory for opening Bank A/c, for purchase sale of Goods above Rs. 2 Lakh, few cash transactions above Rs. 50,000/- and much more

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Quoting of PAN is Mandatory for opening Bank A/c, for purchase sale of Goods above Rs. 2 Lakh, few cash transactions above Rs. 50,000/-  and much more

Income Tax Department have its own way of tracking the taxpayers details. One of the mechanism is by making quoting of PAN mandatory in certain transactions.
Section 139A (5) provides that the CBDT has the power to specify the classes of person where quoting of PAN is mandatory. The said section reads as under:
139A(5) Every person shall—
(a)  quote such number in all his returns to, or correspondence with, any income-tax authority;
(b)  quote such number in all challans for the payment of any sum due under this Act;
(c)  quote such number in all documents pertaining to such transactions as may be prescribed56 by the Board in the interests of the revenue, and entered into by him:
Provided that the Board may prescribe different dates for different transactions or class of transactions or for different class of persons:
Provided further that a person shall quote General Index Register Number till such time Permanent Account Number is allotted to such person;
(d) intimate the Assessing Officer any change in his address or in the name and nature of his business on the basis of which the permanent account number was allotted to him.
Pursuant to Section 139A (5), CBDT has prescribed In Rule 114B the categories of person or transactions where PAN is mandatory. More particularly, the quoting of PAN is mandatory in the following cases:
  1. Sale or purchase, by any person, of goods or services of any nature of more than Rs. 2 Lakh
  2. If you are buying or selling a motor vehicle
  3. Opening a bank account
  4. While applying for a debit or credit card
  5. Opening a demat account
  6. Payment in cash of an amount exceeding ₹50,000 to a hotel or restaurant against bill at any one time
  7. Cash payment of more than Rs. 50,000 in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time
  8. Buying mutual funds, debentures, bonds, etc worth more than ₹50,000
  9. Depositing cash of over ₹50,000 in a day in a bank
  10. Payment of over ₹50,000 in cash during any one day for purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank
  11. If your fixed deposit exceeds ₹50,000 in one go or aggregating to more than ₹5 lakh during a financial year
  12. Payment of more than ₹50,000 in a financial year to pre-paid payment instruments
  13. Payment of more than ₹50,000 in a financial year as life insurance premium
  14. Selling or buying of securities, other than shares for amount exceeding ₹1 lakh per transaction
  15. Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange for amount exceeding ₹1 lakh per transaction
  16. Sale or purchase of any immovable property for an amount exceeding ₹10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ₹10 lakh
Exceptions to the PAN rule:
1) Just in case you do not have PAN, Income Tax department rules allows you to carry out any of the above transactions after signing a declaration in Form 60 which states that you do not hold a PAN card and the income is below taxable limit.
2) Minors are allowed to quote PAN card number of a parent or guardian only if he or she does not have any taxable income.
3) NRIs get relaxation in quoting PANs in some cases.
4) According to rule 114B, the central government, state governments and the consular offices are not required to mention PAN card numbers.
Section 114B reads as under:
Transactions in relation to which permanent account number is to be quoted in all documents for the purpose of clause (c) of sub-section (5) of section 139A.
114B. Every person shall quote his permanent account number in all documents pertaining to the transactions specified in the Table below, namely:—
TABLE
Sl.No.
Nature of transaction
Value of transaction
(1)
(2)
(3)
1.
Sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) which requires registration by a registering authority under Chapter IV of that Act, other than two wheeled vehicles.
All such transactions.
2.
Opening an account [other than a time-deposit referred to at Sl. No.12 and a Basic Savings Bank Deposit Account] 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).
All such transactions.
3.
Making an application to any 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) or to any other company or institution, for issue of a credit or debit card.
All such transactions.
4.
Opening of a demat account with a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).
All such transactions.
5.
Payment to a hotel or restaurant against a bill or bills at any one time.
Payment in cash of an amount exceeding fifty thousand rupees.
6.
Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time.
Payment in cash of an amount exceeding fifty thousand rupees.
7.
Payment to a Mutual Fund for purchase of its units.
Amount exceeding fifty thousand rupees.
8.
Payment to a company or an institution for acquiring debentures or bonds issued by it.
Amount exceeding fifty thousand rupees.
9.
Payment to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) for acquiring bonds issued by it.
Amount exceeding fifty thousand rupees.
[10.
Deposit with,—
(i)
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);
(ii)
Post Office.
Cash deposits,—
(i)
exceeding fifty thousand rupees during any one day; or
(ii)
aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016.]
11.
Purchase of bank drafts or pay orders or banker’s cheques from 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).
Payment in cash for an amount exceeding fifty thousand rupees during any one day.
12.
A time deposit with,—
(i) 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);
(ii) a Post Office;
(iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or
(iv) 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.
Amount exceeding fifty thousand rupees or aggregating to more than five lakh rupees during a financial year.
13.
Payment for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007), to 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) or to any other company or institution.
Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than fifty thousand rupees in a financial year.
14.
Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938).
Amount aggregating to more than fifty thousand rupees in a financial year.
15.
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).
Amount exceeding one lakh rupees per transaction.
16.
Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange.
Amount exceeding one lakh rupees per transaction.
17.
Sale or purchase of any immovable property.
Amount exceeding ten lakh rupees or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
18.
Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table, if any.
Amount exceeding two lakh rupees per transaction:
Provided that where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the permanent account number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction:
Provided further that any person who does not have a permanent account number and who enters into any transaction specified in this rule, he shall make a declaration in Form No.60 giving therein the particulars of such transaction 1[either in paper form or electronically under the electronic verification code in accordance with the procedures, data structures, and standards specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems)]:
Provided also that the provisions of this rule shall not apply to the following class or classes of persons, namely:—
(i)
the Central Government, the State Governments and the Consular Offices;
(ii)
the non-residents referred to in clause (30) of section 2 of the Act in respect of the transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or 10 or 12 or 14 or 15 or 16 or 17 of the Table:
2[Provided also that a person who has an account (other than a time deposit referred to at S.No.12 of the Table and a Basic Saving Bank Deposit Account) maintained 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) and has not quoted his permanent account number or furnished Form No. 60, as the case may be, at the time of opening of such account or subsequently, he shall furnish his permanent account number or Form No.60, as the case may be, to the person specified in clause (c) of sub-rule (1) of rule 114C on or before the 3[30th day of June], 2017.] ]
Explanation.—For the purposes of this rule,—
(1)
“payment in connection with travel” includes payment towards fare, or to a travel agent or a tour operator, or to an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);
(2)
“travel agent or tour operator” includes a person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package;
(3)
“time deposit” means any deposit which is repayable on the expiry of a fixed period.]

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