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Know Where to Quote Your PAN- Income Tax Rules [2022]
We know that, PAN is a very important and unique tax identity in India. It is basically a ten digit alpha numeric number, allotted and issued in the form of laminated card by income tax department.
In this post, I am going to discuss about the list of monetary transactions where quoting of PAN is compulsory.
I am assuming that, you people know about the basic details of PAN.
To know in details 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.
Income Tax authority (CBDT) has specified and declared those transactions and responsible to notify any changes or amendment made in the provisions of this rule 114B.
Last year, in Dec 2015, Income Tax authority has announced through a press release that, W.e.f., 1st Jan 2016, it will be mandatory to quote the PAN for all transactions above Rs.2 lakh.
That is In case of transactions of sale or purchase of goods and service PAN will be required to be quoted, irrespective of the mode of payment if the transaction exceeds Rs. two lakhs.
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 the Rule 114B to enhance the monetary limits of certain transactions which requires 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 | Sale or purchase of motor vehicle (excluding two wheeler) | All Such Transactions |
| 3 | Opening a Bank account with bank (except saving bank account) | All Such Transactions |
| 4 | Application for Credit Card or Debit Card | All Such Transactions |
| 5 | Opening a Demat account | All Such Transactions |
| 6 | Payment to hotels and restaurants against their bills | Cash payment exceeding Rs. 50,000/- |
| 7 | Payment in connection with foreign travel or payment for purchasing of foreign currency | Cash payment exceeding Rs. 50,000/-in one time |
| 8 | Cash Deposit with a Bank | Amount exceeding Rs.50,000/-in a day |
| 9 | Purchase of a DD (demand draft / bankers cheque) | Payment in cash exceeding Rs.50,000/-on any one day |
| 10 | Time Deposit with a Bank, Post office,Nidhi companies, NBFC’s | 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, person involving 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 for Central Govt., State Govt and consular offices.
Find the Link of 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