Durga Rao & Co., Chartered Accountants is a medium sized firm catering to the requirements of various Commercial and Non Commercial Entities for more than 3 decades. Established in the
PAN - Mandatory for certain transactions
Submitted by admin on Sun, 04/10/2016 - 12:07
CREATED
10
Apr
2016
UPDATED
27
Oct
2020
From time to time we often hear about PAN being mandatory for several transactions. The main aim of bringing these provisions are
- to widen the tax base
- to detect high value transactions that might escape tax
- curb black money
- to keep audit trail on persons with luxary life style and cross check their income tax returns
We try to bring all such provisions into one place:-
| Nature of Transaction | Effective Period | Monetary Limits | Reference |
|---|---|---|---|
| All transactions in all modes of payment, especially Sale and Purchase of Goods and Services |
from Jan 1, 2016 | Above Rs. 2.00 Lakhs | |
| Purchase of Immovable Property | from Jan 1, 2016 | Rs. 10.00 Lakhs or more | |
| earlier | Rs. 5.00 Lakhs or more | ||
| Purchase of Cars, Vehicles | No Limit | ||
|
Purchase of Cash or Prepaid Cards |
Rs. 50,000/- or more | ||
| Purchase of Gold Jewellery | Above Rs. 2.00 Lakhs | ||
| Cash payment at Hotel or Restaurant | from Jan 1, 2016 | Rs. 50,000/- or more | |
| earlier | Rs. 25,000/- or more | ||
|
All fixed deposits with post offices, |
Above Rs. 2.00 Lakhs | ||
|
All Bank accounts opened including those |
Nil | ||
| Cash Expenses related to Foreign Travel like purchase of forex |
from Jan 1, 2016 | Rs. 50,000/- or more | |
| earlier | Rs. 25,000/- or more | ||
| Opening a Telephone connection | from Jan 1, 2016 | Not required | |
| earlier | Required |
