PAN will be mandatory from 1st January, 2016 to curb black money

Government of India has taken a decision mandating PAN for opening all bank accounts and other transactions, purchases across the country.

The Indian Government committed to curbing the circulation of black money and widening of tax base has mandated PAN for opening all bank accounts except Pradhan Mantri Jan Dhan Yojana accounts.

Latest information for Government sources, in a statement Revenue Secretary Adhia Hasmukh said, ‘To collect information on certain types of transactions from third parites in a non-intrusive way, the Income-tax rules require quoting of PAN where the transaction exceeds a specified limit’.

PAN fixed mandatory details as follows:

• On purchasing of immovable property of Rs.10 lakh
• PAN required if the sum involved purchasing of Jewellery of Rs.2 Lakh per transaction.
• For cash payment made to settle hotels bills or for buying foreign travel tickets of Rs.5000 PAN is mandatory
• For cash payments of more than Rs.5000 for cash cards or prepaid instruments as well as for acquiring shares of unlisted companies for Rs.1 lakh and above
• The PAN need for non-luxury cash transaction will be Rs.2 lakh.

PAN not mandatory certain places

• Small investors furnishing PAN for making post office deposit of over Rs.50000
• Discontinuation of PAN for installation of basic landline or cellphone connection

Telangana

Tuday