Know Where to Quote Your PAN- Income Tax Rules [2023]
We know that PAN is a very important and unique tax identity in India. It is basically a ten-digit alphanumeric number, allotted and issued in the form of a laminated card by the income tax department.
In this post, I am going to discuss the list of monetary transactions where quoting PAN is compulsory.
I am assuming that you people are familiar with the basic details of PAN.
To know in detail about PAN – its basic structure, meaning, use & importance, kindly read our earlier post: Know Your PAN-Meaning, Structure & Importance
Now, you must know, where to quote your PAN – what are the lists of transactions or specified monetary limits where quoting of permanent account number requires?
Rule 114B- Income Tax Rules
The Central Government with an intention to curb the circulation of black money & find out the cases of tax evasion added a rule “Rule 114B” under Rule 114 of the Income tax Rules.
As per this rule (Rule 114B), every person shall quote his or her permanent account number (PAN) in all documents pertaining to the transactions specified under this rule.
There is a list of transactions specified and mentioned under Rule 114B of Income tax rules.
CBDT has specified and declared those transactions and is responsible to notify any changes or amendments made in the provisions of this rule 114B.
Notification – Rule114B for Quoting PAN amended
Government of India (MoF), Department of Revenue Central Board of Direct Taxes, vide Notification – S.O. No. 3545(E) dated 30th Dec 2015, has amended Rule 114B to enhance the monetary limits of certain transactions which require quoting of PAN.
Transactions where Quoting of PAN Mandatory
Here is the new & amended list of financial transactions where quoting of PAN has been made mandatory, w.e.f., 1st Jan 2016:
| S.No. | Particulars – Financial Transaction | Value / Limit of Financial Transactions |
| 1 | Sale or purchase of immovable property | Payment exceeding Rs. 10,00,000 or valued by stamp valuation authority, an amount exceeding Rs. 10,00,000 |
| 2 | All such Transactions | All such Transactions |
| 3 | Payment in connection with foreign travel or payment for purchasing foreign currency | All such Transactions |
| 4 | Application for Credit Card or Debit Card | All such Transactions |
| 5 | Opening a Demat account | Opening a Bank account with a bank (except saving bank account) |
| 6 | Payment to hotels and restaurants against their bills | Cash payment exceeding Rs. 50,000/- |
| 7 | Purchase of a DD (demand draft/bankers cheque) | Cash payment exceeding Rs. 50,000/-in one time |
| 8 | Cash Deposit with a Bank | Amount exceeding Rs.50,000/-in a day |
| 9 | Time Deposit with a Bank, Post office, Nidhi companies, NBFC’s | Payment in cash exceeding Rs.50,000/-on any one day |
| 10 | Time Deposit with a Bank, Post office, Nidhi companies, NBFC | Amount exceeding Rs.50,000/ day or aggregating to more than Rs. 5 Lacs |
| 11 | Payment to Mutual Fund for purchase of its units | Payment exceeding Rs. 50,000/- |
| 12 | Payment to a company for acquiring Shares issued by it | Payment exceeding Rs. 50,000/- |
| 13 | Payment to a company or an institution for acquiring debentures or bonds issued by it | Payment exceeding Rs. 50,000/- |
| 14 | Payment to RBI for acquiring bonds issued by it | Payment exceeding Rs. 50,000/- |
| 15 | Sale or purchase of unlisted shares | Payment exceeding Rs. 100,000/- per transaction |
| 16 | Payment for life insurance premium | Payment exceeding Rs. 50,000/- in a year |
| 17 | Purchase or sale of goods or services | Purchase/sale of goods or services exceeding Rs. 2 Lakh per transaction |
Thus, as per Rule 114B, every person shall quote his or her permanent account number (PAN) in all documents pertaining to the transactions specified and listed above.
- Note:
In case, the person involved in the transactions is a minor, he or she will quote the PAN of his father/ mother/ guardian, as the case may be, in the document pertaining to the said transaction.
- If, a Person entering into any transactions specified above does not have a PAN, will make a declaration in Form No.60.
- Provisions of Rule114B shall not be applicable to Central Govt., State Govt, and consular offices.
Recommended Read:
Find the Link to the Press release & CBDT Notification attached herewith for reference:
Press Release – Amendment of Rule 114B regarding Quoting of PAN
CBDT Notification – Amendment of Rule 114B regarding Quoting of PAN
