You will have to flash your
permanent account number (PAN) for any transaction of over Rs 2 lakh regardless
of mode of payment. The government has issued a notification to give effect to
the budget proposal, intended to check domestic black money, apart from
modifying the rules for PAN requirement for other transactions as well.
The monetary limits for quoting PAN
has raised to Rs 10 lakh from Rs. 5 lakh for sale or purchase of immovable
property, to Rs 50,000 from Rs 25,000 in the case of one time hotel or
restaurant bills and to Rs 1 lakh from Rs 50,000 for purchase or sale of shares
of an unlisted company.
This was one of the measures
proposed by the government in the budget to curb domestic black money.
The budget had proposed a Rs 1 lakh
limit. "Quoting of PAN is being made mandatory for any purchase or sale
exceeding the value of Rs1 lakh," FM had said in his budget speech.
A higher limit has been notified
following representation from various quarters.
"Considering the
representations, it has been decided that quoting of PAN will be required
fortransactions of an amount exceeding Rs.2 lakh regardless of the mode of
payment," the Finance Ministry said in a statement.
Persons who do not hold PAN are
required to fill a form and furnish any one of the specified documents to
establish their identity, the statement said. The new rules will come into
effect from January 1, 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," the statement said.
There will not be any requirement of
PAN for Jan Dhan accounts as well.
Source:-The Economic Times
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