Thursday, December 31, 2015

AMENDED RULES REGARDING QUOTING OF PAN FOR SPECIFIED TRANSACTIONS


The Central Board of Direct Taxes (CBDT), with a view of widening the tax net has notified new rules regarding mandatory quoting of PAN for specified transactions, under Rule 114B.These rules will be applicable from 1st Day of January, 2016.

A chart highlighting the key changes to Rule 114B of the Income Tax Act  is attached hereunder:


S.N.
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.   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.     Deposit 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:
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. 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.    Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.

15.
Debentures/ bonds
Payment of Rs.50,000/ or more to a company/ institution for acquiring its debentures/ bonds
Payment exceeding Rs.50,000/-.

16.
RBI bonds
Payment  of Rs.50,000/-or  more  to RBI  for  acquiring  its bonds

Payment exceeding Rs.50,000/-.

17.
Life insurance premium
Payment of Rs.50,000/or more in a year as premium  to an insurer
Payment exceeding Rs.50,000/in a year.

18.
Purchase of jewellery/bullion
Payment of Rs.5 lakh or more at any one time or against a bill
Deleted and merged with next item in this table
19.
Purchases or sales of goods or services

No requirement
Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.

20.
Cash  cards/  prepaid instruments  issued  under Payment and Settlement Act
No requirement
Cash  payment  aggregating  to more than Rs.50,000 in a year.

Source: Press Information Bureau
Compiled by:
CA Narinder Gupta
47- Near New Judicial Court Complex,
Opposite Judge’s Residence Gate
Rajpura – 140401
9779023228, 9417023228


1 comment:

  1. Thanks to give information of all quoting, you can create transactions by follow this rules and for transactions you have to know about pan card detail and if any change like Pan Card Name Change is required then go for it and get new copy of your pan card to make transactions.

    ReplyDelete