Rules regarding quoting of PAN for specified transactions amended

Rules regarding quoting of PAN for specified transactions amended

The Government is committed to curbing the circulation of black money and widening of tax base. To collect information of certain types acheter viagra of transactions from third parties in a non-intrusive manner, the Income-tax Rules require quoting of Permanent Account Number (PAN) where the transactions exceed a specified limit. Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity.

One of the recommendations of the Special Investigation Team (SIT) on Black Money was that quoting of PAN should be made mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh. Accepting http://www.cialispharmaciefr24.com/vente-cialis-generique/ this recommendation, the Finance Minister made an announcement to this effect in his Budget Speech. The Government has since received numerous representations from various quarters regarding the burden of compliance this proposal would entail. Considering the representations, it has been decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment.

To bring a balance between burden of compliance on legitimate transactions and the need to capture information relating to transactions of higher value, the Government has also enhanced the monetary limits of certain transactions which require quoting of PAN. Adidas Yeezy Pas Cher Homme The monetary limits have now been raised to Rs. Chaussure Adidas Ultra Boost 10 lakh from Rs. 5 lakh for sale or purchase of immovable property, to Rs.50,000 from Rs. Boxer Calvin Klein Al Mayor 25,000 in the case of hotel or restaurant bills paid at any one time, and to Rs. 1 lakh from Rs. 50,000 for purchase or sale of shares of an unlisted company. In keeping with the Government’s thrust on financial inclusion, opening of a no-frills bank account such as a Jan Dhan Account will not require PAN. Other than that, the requirement of PAN applies to opening of all bank accounts including in co-operative banks.

The changes to the Rules will take effect from 1st January, 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.

A chart highlighting the key changes to Rule 114B of the Income-tax Act is attached.


Sl.
NATURE OF TRANSACTION MANDATORY QUOTING OF PAN (RULE 114B)
Existing requirement New requirement
1. Immovable property Sale/ purchase valued at Rs.5 lakh or more i. Sale/ purchase exceeding Rs.10 lakh; 

ii. T Shirt Kenzo Homme Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.

2 Motor

vehicle (other than two wheeler)

All sales/purchases No change
3. Time deposit Time deposit exceeding Rs.50,000/- with a banking company i. Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN; 

ii. Adidas Ultra Boost Femme Pas Cher Ropa Interior Calvin Klein Deposits aggregating to more than Rs.5 lakh during the year will also need PAN

4. Deposit with Post Office Savings Bank Exceeding Rs.50,000/- Discontinued
5. Sale or purchase of securities Contract for sale/purchase of a value exceeding Rs.1 lakh No change
6. Opening an account (other than time deposit) with a banking company. All new accounts. i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts); 

ii. T Shirt Versace Homme Pas Cher Ropa Interior Calvin Klein Hombre Co-operative banks also to comply

7. Installation of telephone/ cellphone connections All instances Discontinued
8. Hotel/restaurant bill(s) Exceeding Rs.25,000/- at any one time (by any mode of payment) Cash payment exceeding Rs.50,000/-.
9. Cash purchase of bank drafts/ pay orders/ banker’s cheques Amount aggregating to Rs.50,000/- or more during any one day Exceeding Rs.50,000/- on any one day.
10. Cash deposit with banking company Cash aggregating to Rs.50,000/- or more during any one day Cash deposit exceeding Rs.50,000/- in a day.
11. Foreign travel Cash payment in connection with foreign travel of an amount exceeding Rs.25,000/- at any one time (including fare, payment to travel agent, purchase of forex) Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel agent)
12. Credit card Application to banking company/ any other company/institution for credit card No change. 

Co-operative banks also to comply.

13. Mutual fund units Payment of Rs.50,000/- or more for

purchase

Payment exceeding Rs.50,000/- for purchase.
14. Shares of company Payment of Rs.50,000/- or more to a company for acquiring its shares i. Opening a demat account; 

ii.

About CA.Pankaj Kumar Mishra ACA , ISC (Mathematics) ,MCOM
CA Pankaj Kumar Mishra ( ACA, M-com, B-Com(Computer Science), ISC( Mathematics)) is an Associate Member of Institute of Chartered Accountant of India. He is passionate towards sharing his knowledge of taxation among the students and aspirants of professional bodies like ICAI, ICSI, and ICWAI and also with various management Institute as visiting faculty. He has been a visiting faculty of the Institute of Cost Accountants of India. Professionally CA Pankaj Kumar Mishra is practicing chartered Accountant in the areas of both direct and indirect taxation. His practice areas includes advisory service on the matters of Tax Compliances Management, International Taxation management, Business structuring, Foreign exchange laws including foreign trade policy. He also has rich experience in handling complex issues of taxation matters and income tax proceedings with the Income Tax Authorities and conducting due diligence exercises to facilitate business acquisitions, strategic business management and various joints ventures among national and international bodies. This website is designed with the view to make the viewer understand the concept of various laws with in-depth analysis over the subject , scientific approach with pictorial representation of provisions of laws.