Rule 114B of the Income Tax Rules, 1962 (the Rules) require mandatory quoting of PAN in respect of certain transactions. It is now made mandatory for every person to quote PAN in respect of following additional transactions:
1. payment in cash in connection with travel to any foreign country of an amount exceeding Rs. 25,000 at any one time including such cash payment towards:
- fare, or
- to a travel agent or
- a tour operator or
- to an authorized dealer, money changer, off-shore banking unit or any other person for the time being authorized under sub¬section (1) of section 10 of FEMA Act to deal in foreign exchange or foreign securities
2. making an application to any banking company to which the Banking Regulation Act, 1949, applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card
3. payment of an amount aggregating to Rs. 50,000 or more in a year as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938
4. payment to a dealer
- of an amount of Rs. 5,00,000 or more at any one time; or
- against a bill for an amount of Rs. 5,00,000 or more, for purchase of bullion or jewellery
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AMENDMENT IN RULE 114B OF THE INCOME-TAX RULES, 1962
Income-tax (Fifth) Amendment Rules, 2011 – Amendment in rule 114B
Notification No. 27/2011 [F. NO. 149/122/2010-SO(TPL)], Dated 26-5-2011
In exercise of the powers conferred by section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :—
1. (1) These rules may be called the Income-tax (Fifth Amendment) Rules, 2011.
(2) They shall come into force on the 1st day of July, 2011.
2. In the Income-tax Rules, 1962, in rule 114B,—
(i) in the Explanation (a), in clause (k), for the words “tour operator” the words “tour operator, or to an authorized person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999)” shall be substituted.
(ii) in clause (l) for the words “for issue of a credit card” the words “for issue of a credit or debit card” shall be substituted.
(iii) after clause (p) and before the first proviso, the following clauses shall be inserted, namely :—
“(q) payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);
(r) payment to a dealer,—
(i) of an amount of five lakh rupees or more at any one time; or
(ii) against a bill for an amount of five lakh rupees or more, for purchase of bullion or jewellery;”.
