Government notified mandatory quoting of PAN for cash transactions over Rs 2 lakh

The central government has made it a must to quote the permanent account number (PAN) for all transactions above Rs.2 lakh in a bid to curb black money. This requirement will come into effect from January 2016 and will be applicable on all sale and purchase of goods and services and for all modes of payment.

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 1lakh from Rs 50,000 for purchase or sale of shares of an unlisted company.

The government also made PAN mandatory for the purchase of cash or prepaid cards amounting to Rs.50,000 or more in year. Gold jewellery purchase above Rs.2 lakh too would also need PAN details. The current limit was Rs.5 lakh. All fixed deposits with post offices, cooperative banks, Nidhis, non‐banking finance companies will also require PAN.

It will also be required under:
1) PAN should be quoted for purchase of bank drafts/ pay orders/ banker's cheques exceeding Rs 50,000 on a single day
2) Cash deposit exceeding Rs.50,000/‐ in a single day.
3) For purchase of foreign currency or cash payment related to foreign travel exceeding Rs.50,000/‐
4) Payment in excess of Rs 50,000 for purchase of mutual fund units
5) For opening a demat account
6) Payment exceeding Rs.50,000 for purchase of RBI bonds
7) Payment exceeding Rs.50,000/‐ in a year as life insurance premium 

Note: 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.