PAN Card is Mandatory on Following Services. For the Purpose of Stop Black Money and Increasing in Cash Less Transactions Income Tax Department Issued New Rules for PAN Card, Here we are providing complete details for New Services Where PAN card is Mandatory All over india. CAknowledge Providing Details for all transactions where PAN Card is Mandatory.

PAN means Permanent Account Number. An account number that is permanent. An account number that does not change from time to time. PAN is identified by these things. If you also have a PAN, then look at it. You will see 10 digit unique numbers and letters. Everything related to your transaction is recorded in this 10 digits and letters. The Income Tax Department identifies you through this unique number. There are many things related to transactions and shopping in which it is necessary to mention PAN or give PAN. Failure to do so may result in action.

PAN Card is Mandatory on Following Services

Let us know that on which type of transaction it is mandatory to give PAN information. In this rule, the exemption has been given to central employees, state employees and consular office employees. They do not need to quote PAN on the transaction.

Life Style Segment

  • If your Hotel or Restaurant bill is more than Rs 50000 and if you want to pay in cash then you will require to provide PAN details.
  • If you are going on foreign trip and your travel agency pay your bills or currency conversion in cash then you will require to provide PAN Card Details.
  • If you Purchase Jewellery or other products then you will require to provide PAN Details on all transaction above  Rs 2,00,000.

Saving or Investment Segment

  • If you can do transaction (Time Deposit) more then Rs 5,00,000 (Yearly) on any bank scheme, Post Office Scheme, Nidhi,  NBFC, or Deposit Scheme then you will require to Provide PAN Card Details.
  • If you invest More than 50,000 (Yearly) in Mutual funds then you will require to provide PAN card Details.
  • If you are invested More than 1,00,000 (Yearly) for Opening Demat Account, Purchasing of Shares in any unlisted company then you will require to Provide PAN Card Details.
  • If you invest More than 50,000 (Yearly) in Bonds then you will require to provide PAN card Details.
  • If you are paying more then 1,00,000 (Yearly) for Premium of any LIC and Other Insurance Polices then you will require to Provide PAN Card Details.

Banking Segment

  • If you make Draft for Rs 50,000 or more then you will require to Provide PAN Card Details.
  • If you do transaction of Rs 50,000 or More by Check then you will require to Provide PAN Card Details.
  • If you can deposit more then 50,000 in Cash then you will require to Provide PAN Card Details.
  • if you can do transaction on or above 50,000 in any Cash Card Scheme or any prepaid Instruments then you will require to Provide PAN Card Details.
  • Opening an account (other than time deposit) with a banking company then 1. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts) 2. Co-operative banks also to comply

Real State Segment

  • Sale/ purchase exceeding Rs.10 lakh or Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN Details.

More Info

  • PAN is mandatory for purchase or sale of any motor vehicle other than two wheelers.
  • PAN is necessary to open an account in any banking company or cooperative bank. Basic savings bank deposit account is exempted from
  • If you apply for the issue of debit or credit card, then you have to give PAN card.
  • PAN is mandatory if demat account is to be opened with a depository, security or any person affiliated to SEBI
  • If you pay more than Rs 50,000 in a hotel, restaurant bill at a time (online transaction), then PAN will have to be given.
  • PAN is mandatory if you spend more than Rs 50,000 on a trip abroad or in the purchase of foreign currency.
  • PAN will be required if you spend more than Rs 50,000 on buying a mutual fund or its units
  • PAN required to be furnished if expenditure exceeds Rs 50,000 at a time on purchase of debentures or bonds
  • If you buy a bond issued by the Reserve Bank on which an expenditure of more than Rs 50,000 is required, then it is necessary to mention PAN.
  • Deposit more than Rs 50,000 in cash in a day in any banking company or cooperative bank
  • PAN required to be furnished if expenditure exceeds Rs 50,000 on draft or pay order or check of a banking company or co-operative bank
  • PAN card is mandatory in case of time deposit of more than Rs 50,000 in any bank or cooperative bank or deposits of more than Rs 5 lakh in a financial year.
  • If you start a time deposit of more than Rs 50,000 or more than 5 lakh in a financial year in a post office or non-banking financial company, then it is mandatory to give PAN
  • PAN is mandatory for transactions of more than Rs 50,000 through bank draft or banker’s check in any one prepaid instrument.
  • Mention of PAN is mandatory if the expenditure on purchase of life insurance from any company exceeds Rs 50,000 in a year.
  • In addition to shares, if you contract or sell security with a transaction of more than Rs 1 lakh at a time, then it is mandatory to give PAN.
  • Purchase or sale of immovable property exceeding Rs.10 lakh. or if such cost is spent on stamp value then PAN is required
  • If you do a transaction of more than Rs 2 lakh on goods or services, then it is necessary to give PAN.

What a Minor Do

If there is a minor child who does not have a PAN and has to have a big transaction (PAN in shopping) in his name, then its rule is different. Minors can give PAN of their parents or guardians. But this will happen only if the minor does not come under the purview of tax liability. 

It may also happen that a person does not have a PAN, but he has to make major purchases or deposit money in banks or take time deposits etc., in which case he will have to fill Form No. 60 and give a declaration. If someone is a NRI then he need not quote PAN. If PAN is not mentioned in the above mentioned actions, then the tax department can take action in any case.

Details In Tabular Format

S.No TransactionPAN requirement
1.The immovable propertyi. Sale/ purchase exceeding Rs.10 lakh;

ii. Properties valued by Stamp Valuation authority at amounts exceeding Rs.10 lakh will also need PAN.

2Motor vehicle (other than two-wheeler)All sales/purchases
3.Time depositi. Deposits 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.Sale or purchase of securitiesNo change
5.Opening an account (other than time deposit) with a banking company.i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts);

ii. Co-operative banks also to comply

6.Hotel/restaurant bill(s)Cash payment exceeding Rs.50,000/-.
7.Cash purchase of bank drafts/ pay orders/ banker’s chequesExceeding Rs.50,000/- on any one day.
8.Cash deposit with banking companyCash deposit exceeding Rs.50,000/- in a day.
9.Foreign travelCash 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)
10.Mutual fund unitsPayment exceeding Rs.50,000/- for purchase.
11.Shares of companyi. Opening a demat account;

ii. Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.

12.Debentures/ bondsPayment exceeding Rs.50,000/-.
13.RBI bondsPayment exceeding Rs.50,000/-.
14.Life insurance premiumPayment exceeding Rs.50,000/- in a year.
15.Purchase of jewellery/bullionDeleted and merged with next item in this table
16.Purchases or sales of goods or servicesPurchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.
17.Cash cards/ prepaid instruments issued under Payment & Settlement ActCash payment aggregating to more than Rs.50,000 in a year.