A. PAN in Returns or Certificates or Correspondence

Every person shall quote his permanent account number (PAN) in all his returns or challans or correspondence with any income-tax authority. Other than this, every person shall quote his PAN in all documents pertaining to the transactions specified in rule 114B and given in the table below:

S.N. Nature of transactions Value of transaction
1 Sale or purchase of a motor vehicle  (Other than two wheeler) All such transactions
2 Opening an account [other than a time-deposit referred to at Sl. No. 12 and a Basic Savings Bank Deposit Account] with a bank/co-operative bank All such transactions
3 Making an application to a bank/co-operative bank/any other company or institution, for issue of a credit or debit card All such transactions
4 Opening of a demat account All such transactions
5 Payment to a hotel or restaurant against a bill or bills at any one time. Payment in cash of an amount exceeding Rs. 50,000
6 Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time. Payment in cash of an amount exceeding Rs. 50,000
7 Payment to a Mutual Fund for purchase of its units. Amount exceeding Rs. 50,000
8 Payment to a company or an institution for acquiring debentures or bonds issued by it. Amount exceeding Rs. 50,000
9 Payment to the Reserve Bank of India for acquiring bonds issued by it. Amount exceeding Rs. 50,000
10 Deposit with a bank/co-operative bank/post office Deposits in cash exceeding Rs. 50,000 during any one day
11 Purchase of bank drafts/pay orders/banker’s cheques from a bank/co-operative bank Payment in cash for an amount exceeding Rs. 50,000 during any one day
12 A time deposit with bank/co-operative bank/post office/Nidhi/non-banking financial company Amount exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 during a financial year
13 Payment for one or more pre-paid payment instruments to a bank/co-operative bank/any other company or institution Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than Rs. 50,000 in a financial year
14 Payment as life insurance premium to an insurer Amount aggregating to more than Rs. 50,000 in a financial year
15 A contract for sale or purchase of securities (other than shares) Amount exceeding Rs. 1,00,000 per transaction
16 Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange Amount exceeding Rs. 1,00,000 per transaction
17 Sale or purchase of any immovable property Amount exceeding Rs. 10,00,000 or valued by stamp valuation authority referred to in section 50C at an amount exceeding Rs. 10,00,000
18 Sale or purchase of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table by any person Amount exceeding Rs. 2,00,000 per transaction

Some Points Need To Remember:

1. With effect from 1st Sep. 2019, every person who is required to furnish or intimate or quote his PAN and who has not been allotted a PAN but possesses the Aadhaar number, may furnish his Aadhaar number in lieu of PAN.

2. Where a person, entering into any transaction referred to in the table above, is a minor and who does not have any income chargeable to income-tax, he shall quote PAN of his father or mother or guardian, as the case may be, in the relevant document.

3. Any person who does not have PAN and who enters into any transactions given above, he shall make a declaration in Form No. 60 giving therein the particulars of such transaction.

4. “Payment in connection with travel” includes payment towards fare, or to a travel agent or a tour operator, or to an authorised person.

5. “Travel agent or tour operator” includes a person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package.

6. “Time deposit” means any deposit which is repayable on the expiry of a fixed period.

Exemption of Rule 114B

The provision of quoting PAN is not applicable in case of the following persons:

  • Central Government, the State Governments and the Consular Offices;
  • Non-resident in respect of transactions other than a transaction referred to at Sl. Nos. 2,4,7,8,10,12,14,15,16,17 of the table

B. PAN of Recipient or Purchaser in Tax Deduction/Collection at Source

Tax Deduction at Source

Where any sum or income has been paid after deducting tax, every person deducting tax shall quote the PAN of the recipient, in a statement furnished in accordance with the provisions of section 192(2C), in all certificates furnished in accordance with the provision of section 203 (Form Nos. 16, 16A) and in all returns annual or quarterly (I.e. Form Nos. 24, 26, 24Q, 26Q and 27Q, etc.)

Tax Collection at Source

Every seller collecting tax under section 206C shall quote the permanent account number of every buyer, in all certificates furnished in accordance with the provisions of section 206C(5), and in all returns to an income-tax authority.

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