A chart highlighting the key changes to Rule 114B of the Income-tax Act is attached.
Sl.
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NATURE OF TRANSACTION
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MANDATORY QUOTING OF PAN (RULE 114B)
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Existing requirement
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New requirement
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1.
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Immovable property
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Sale/ purchase valued at Rs.5 lakh or more
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i. Sale/ purchase exceeding Rs.10 lakh;
ii. Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN.
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2
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Motor vehicle (other than two wheeler)
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All sales/purchases
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No change
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3.
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Time deposit
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Time deposit exceeding Rs.50,000/- with a banking company
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i. 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
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4.
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Deposit with Post Office Savings Bank
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Exceeding Rs.50,000/-
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Discontinued
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5.
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Sale or purchase of securities
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Contract for sale/purchase of a value exceeding Rs.1 lakh
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No change
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6.
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Opening an account (other than time deposit) with a banking company.
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All new accounts.
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i. Basic Savings Bank Deposit Account excluded (no PAN requirement for opening these accounts);
ii. Co-operative banks also to comply
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7.
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Installation of telephone/ cellphone connections
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All instances
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Discontinued
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8.
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Hotel/restaurant bill(s)
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Exceeding Rs.25,000/- at any one time (by any mode of payment)
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Cash payment exceeding Rs.50,000/-.
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9.
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Cash purchase of bank drafts/ pay orders/ banker's cheques
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Amount aggregating to Rs.50,000/- or more during any one day
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Exceeding Rs.50,000/- on any one day.
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10.
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Cash deposit with banking company
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Cash aggregating to Rs.50,000/- or more during any one day
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Cash deposit exceeding Rs.50,000/- in a day.
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11.
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Foreign travel
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Cash payment in connection with foreign travel of an amount exceeding Rs.25,000/- at any one time (including fare, payment to travel agent, purchase of forex)
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Cash 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)
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12.
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Credit card
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Application to banking company/ any other company/institution for credit card
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No change.
Co-operative banks also to comply.
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13.
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Mutual fund units
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Payment of Rs.50,000/- or more for purchase
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Payment exceeding Rs.50,000/- for purchase.
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14.
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Shares of company
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Payment of Rs.50,000/- or more to a company for acquiring its shares
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i. Opening a demat account;
ii. Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction.
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15.
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Debentures/ bonds
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Payment of Rs.50,000/- or more to a company/ institution for acquiring its debentures/ bonds
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Payment exceeding Rs.50,000/-.
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16.
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RBI bonds
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Payment of Rs.50,000/-or more to RBI for acquiring its bonds
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Payment exceeding Rs.50,000/-.
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17.
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Life insurance premium
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Payment of Rs.50,000/- or more in a year as premium to an insurer
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Payment exceeding Rs.50,000/- in a year.
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18.
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Purchase of jewellery/bullion
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Payment of Rs.5 lakh or more at any one time or against a bill
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Deleted and merged with next item in this table
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19.
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Purchases or sales of goods or services
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No requirement
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Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.
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20.
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Cash cards/ prepaid instruments issued under Payment & Settlement Act
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No requirement
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Cash payment aggregating to more than Rs.50,000 in a year.
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