It’s obligatory to say PAN for these monetary transactions


Point out of PAN is obligatory for these monetary transactions

foremost concept

  • PAN card is obligatory not just for submitting Earnings Tax Return (ITR), but additionally for finishing up many transactions.

  • You too can use your Aadhar card quantity in lieu of PAN card quantity or Kind 60. can signal

  • NRIs get exemption in quoting PAN in sure instances

New Delhi: Everlasting Account Quantity or PAN is without doubt one of the most necessary monetary paperwork within the nation. PAN is a ten digit distinctive alphanumeric quantity issued by the Earnings Tax Division. It permits the tax division to hyperlink all of the transactions of the assessee with the division.

These transactions embrace tax fee, TDS/TCS credit score, return of revenue, specified transactions, correspondence and so forth. PAN facilitates simple retrieval of the assessee’s info and reconciliation of assorted investments, borrowings and different enterprise actions of the assessee to make sure that there isn’t a tax evasion or suspicious transactions.

Specified monetary transactions wherein PAN is obligatory:

The Earnings Tax Division has stated that as per Rule 114B of the Earnings Tax Act, there are specific transactions wherein it’s obligatory for each individual besides the Central Authorities, State Governments and Consular Workplaces to cite PAN. These transactions are:

  1. Sale or buy of any motorcar or conveyance aside from two wheelers.‚Äč
  2. Opening of account in any banking firm or co-operative financial institution.
  3. Making use of for issuance of credit score or debit card.
  4. Opening of Demat account with Depository, Participant, Custodian of Securities or another individual with SEBI.
  5. Money fee of an quantity exceeding Rs. 50,000 in a resort or restaurant towards the invoice at a time.
  6. Money fee of an quantity exceeding Rs. 50,000 in respect of fee for journey to any international nation or buy of any international forex at anybody time.
  7. Fee of an quantity exceeding Rs. 50,000 to the mutual fund for the acquisition of its models.
  8. Fee of an quantity exceeding Rs. 50,000 to an organization or establishment for receiving debentures or bonds issued by it.
  9. Fee of an quantity exceeding Rs. 50,000 for acquiring the bonds issued by it to the Reserve Financial institution of India.
  10. Deposit with a banking firm or co-operative financial institution:- Money in extra of Rs. 50,000 throughout any in the future; or an combination money deposit of greater than Rs. 2,50,000 in the course of the interval November 09, 2016 to December 30, 2016.
  11. Fee in money for an quantity exceeding Rs. 50,000 throughout any in the future for buy of financial institution draft or pay order or banker’s examine from a banking firm or co-operative financial institution.
  12. Mounted deposit of an quantity exceeding Rs. 50,000 or in combination Rs. 5 lakh throughout a monetary yr – a banking firm or a co-operative financial institution; a publish workplace; Funds referred to in part 406 of the Corporations Act, 2013 or non-banking monetary firm.
  13. Fee in money or by means of financial institution draft or pay order or banker’s cheque aggregating to an quantity exceeding Rs. 50,000 in a monetary yr. for a number of pay as you go fee devices as prescribed by the Reserve Financial institution of India beneath part 18 of the Fee and Settlement Techniques Act, 2007 to a banking firm or co-operative financial institution or another firm or establishment.
  14. Fee of an combination quantity exceeding Rs. 50,000 as life insurance coverage premium to the insurer in a monetary yr.
  15. A contract for the sale or buy of securities (aside from shares) for an quantity exceeding Rs. 1 lakh per transaction.
  16. Sale or buy of shares of an organization, which isn’t listed on a acknowledged inventory trade, for an quantity exceeding Rs. 1 lakh per transaction.
  17. Sale or buy of any immovable property for an quantity exceeding Rs. 10 lakh or the worth by the Stamp Valuation Authority referred to in part 50C of the Act on an quantity exceeding ten lakh rupees.
  18. Sale or buy of products or providers of any sort aside from these specified above for an quantity exceeding Rs. 2 lakh per transaction.

Do not forget that PAN is just not required to be quoted by a non-resident within the transactions referred to at level no. 3 or 5 or 6 or 9 or 11 or 13 or 18.

It’s pertinent so as to add that minors can quote PAN of their father or mom or guardian supplied they don’t have any revenue chargeable to revenue tax. Any individual, who doesn’t have a PAN and enters into any of the transactions listed above, could make a declaration in Kind No. 60 to keep away from discover or enquiry from the tax division.

Aadhar Card as an alternative of PAN Guidelines:

Aadhar card rule is now one other exception however legitimate solely for many who have been allotted PAN. For instance, if the PAN card quantity is just not available in entrance of you or you will have misplaced it, you may simply quote your Aadhaar card quantity as an alternative of PAN.

Earnings Tax Division has allowed all PAN card holders to say Aadhaar quantity in lieu of PAN. You should utilize it not solely to file your Earnings Tax Return but additionally to carry out the above specified transactions for which PAN is obligatory. However it’s important to hyperlink PAN card with Aadhar card.



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