Is PAN Card Compulsory for Quotations In Financial Transactions?

A PAN (Permanent Account Number) card is a ten-digit unique alphanumeric number issued by the Income Tax Department. PAN is an important document, especially for calculating financial transactions. As it is known to all that through PAN card the Income Tax Department keeps tabs on financial transactions of an individual. PAN card is more than just an identification document; in fact, it is a very useful mean to calculate the total tax revenue that is generated in the country.

Income tax Department has made PAN card compulsory for every transaction with the IT department. It is also compulsory for various other financial transactions such as opening of a bank account, cash deposit in banks, opening of Demat Account, any dealing done in securities, and such other transactions.

Every individual person shall quote his PAN in all documents pertaining to the transactions specified in rule 114B. The following are the transaction was quoting the PAN Card is compulsory

1. During the time of depositing Rs.50000 and beyond at a bank whether private or nationalized.
2. On sale or purchase of any immovable property that is exceeding the amount of Rs 10 lakh or more. Even if the amount valued by stamp valuation authority referred by section 50C of the amount that I exceeding Rs.10 lakh.
3. If the bill amount of a hotel stay which is exceeding to R 25,000 at any one time
4. Payment is done against the life insurance premium to the insurer, aggregating amount exceeding to 50,000 or more
5. When the investable amount is Rs 50,000 or more when investing in Mutual Funds.
6. Payment made in connection to any international travel, or payment made in connection to purchase done on buying any foreign currency amount exceeding to Rs.50000.
7. When opening a bank account including cooperative banks also.
8. Applying to a bank /co-operative bank or any other institution for credit or debit card.
9. On purchase or sale of motor vehicle apart from two-wheeler.
10. On Purchase of shares, debentures or bond of a company worth Rs 50,000 or more.
11. On purchase of DD, pay order or banker’ cheque for an aggregated amount of 50,000 or in a day through cash.
12. When an amount exceeds more than 1 lakh per transaction for the contract of sale and purchase of securities other than shares.
13. While the opening of the bank account for a minor the PAN card of the mother father or any guardian is required.
14. Payment is done to RBI for purchasing bond issued by it exceeding the amount to Rs. 50000.
15. Purchase or sale of good or service amount exceeding to Rs 2lakh and more.
16. Payment to a dealer of an amount of five lakh rupees or more at any one time.
17. Sale or purchase of a share of a company not listed in recognized stock exchange amount worth Rs 1 lakh per transaction.
18. A cash deposit of aggregating to more than Rs 2,50,000 during the period 09th November 2016 to 30th December 2016 {Kindly recheck this point}

The below points to be noted:

• Anyone who doesn’t have a PAN card and gets into the above-mentioned transaction needs to make a declaration in Form No 60. Giving therein the detail of such a transaction. The declaration can be done in two ways either on papers or electronically through verification code.
• The above quoting of PAN is not applicable to the following
• Central Government, the State Governments and the Consular Offices;
• “Payment made in connection with travel” consist of payment done towards fare, or to a travel agent or a tour operator, or to an authorized person.