20 Transactions Where Quoting PAN is Mandatory From Jan 1, 2016

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The Permanent Account Number (PAN) is a must for most of the financial transaction. The government has issued new guidelines in order to curb circulation of black money and widening of tax base, for which quoting PAN is necessary.

The government has also enhanced the monetary limits of certain transactions which require quoting of PAN. The changes to the Rules will take effect from 1st January, 2016.

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.

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20 Transactions Where Quoting PAN is Mandatory From Jan 1, 2016

  Existing requirementNew requirement
1.Immovable propertySale or purchase valued at Rs 5 lakh or morei. Sale/purchase exceeding Rs.10 lakh;
ii.Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.
2Motor vehicle (other than two wheeler)All sales/purchasesNo change
3Time depositTime deposit exceeding Rs.50,000/- with a banking companyi. Deposits with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN;
ii. Deposits aggregating to more than Rs.5 lakh during the year will also need PAN
4Deposit with Post Office Savings BankExceeding Rs.50,000/-Discontinued
5Sale or purchase of securitiesContract for sale/purchase of a value exceeding Rs.1 lakhNo change
6Opening 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. Co-operative banks also to comply
7Installation of telephone/ cellphone connectionsAll instancesDiscontinued
8Hotel/restaurant bill(s)Exceeding Rs.25,000/- at any one time (by any mode of payment)Cash payment exceeding Rs.50,000/-
9Cash purchase of bank drafts/ pay orders/ banker's chequesAmount aggregating to Rs.50,000/- or more during any one dayExceeding Rs.50,000/- on any one day.
10Cash deposit with banking companyCash aggregating to Rs.50,000/- or more during any one dayCash deposit exceeding Rs.50,000/- in a day.
11Foreign travelCash payment in connection with foreign travel of an amount exceeding Rs.25,000/- at any one time Cash payment in connection with foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time
12Credit cardApplication to banking company/ any other company/institution for credit cardNo change.
Co-operative banks also to comply
13Mutual fund unitsPayment of Rs.50,000/- or more for purchase No change
14Shares of companyPayment of Rs.50,000/- or more to a company for acquiring its sharesi. Opening a demat account;
ii. Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.
15Debentures/ bondsPayment of Rs.50,000/- or more to a company/ institution for acquiring its debentures/ bondsPayment exceeding Rs 50,000/-.
16RBI bondsPayment of Rs.50,000/-or more to RBI for acquiring its bondsPayment exceeding Rs 50,000/-.
17Life insurance premiumPayment of Rs.50,000/- or more in a year as premium to an insurerPayment exceeding Rs 50,000/- in a year.
18Purchase of jewellery/bullionPayment of Rs.5 lakh or more at any one time or against a billDeleted and merged with next item in this table
19Purchases or sales of goods or servicesNo requirementPurchase/ sale of any goods or services exceeding Rs 2 lakh per transaction.
20Cash cards/ prepaid instruments issued under Payment & Settlement ActNo requirementCash payment aggregating to more than Rs 50,000 in a year.


It's important to note that almost every high value transaction, including spending money at restaurants, will need a PAN number. If you do not have a PAN number, you have to fill up the form for identification.

It's important to inform our readers that you must apply for a PAN, even though you may not be in the taxable income bracket. The government is increasingly looking at curbing black money and a good way to start is to get people to quote their PAN numbers.


Read more about: pan, permanent account number
Story first published: Wednesday, December 16, 2015, 12:08 [IST]
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