Transactions that require PAN to be quoted

We receive a lot of queries from taxpayers about Permanent Account Number (PAN). The common questions are – Which transactions require PAN? Where should PAN number be quoted?

The Income Tax Department is getting stricter about tracking high-value transactions. It has laid out a list of transactions where it is mandatory to to quote PAN. [Under Rule 114B, a person involved in any of these transactions will have to quote their PAN in all documents pertaining to these transactions.]

Here is a list of the transactions and the value for which PAN is required.

Type of transaction Exceptions Transaction value for PAN
Sale or purchase of a vehicle that requires registration by a registering authority Two-wheeled vehicles All transactions
Opening an account with a banking company or a co-operative bank Time deposit account and basic savings bank account All transactions
Applying for a debit card or credit card with a banking company or co-operative bank or any company or institution All transactions
Opening a demat account with a depository, participant, custodian of securities or any other person registered by SEBI All transactions
One-time payment to a hotel or restaurant against a single or multiple bills Amount exceeding Rs 50,000
One-time payment in connection with travel to a foreign country or purchase of foreign currency Amount exceeding Rs 50,000
Payment to a mutual fund for purchase of units Amount exceeding Rs 50,000
Payment to a company or an institution for acquiring debentures or bonds issued by it Amount exceeding Rs 50,000
Payment to RBI for acquiring bonds issued by it Amount exceeding Rs 50,000
Cash deposit(s) with a banking company or co-operative bank in one day Amount exceeding Rs 50,000
Cash payments for purchase of bank drafts, pay orders or banker’s cheques from a banking company or co-operative bank in one day Amount exceeding Rs 50,000
A time deposit with a banking company or co-operative bank, post office, Nidhi, non-banking financial company Amount exceeding Rs 50,000 or aggregating to more than Rs 5 lakh in a financial year
Payment by cash or pay order or bank draft or banker’s cheque for one or more pre-paid payment instruments issued by RBI Amount exceeding Rs 50,000 in a financial year
Life insurance payment to an insurer Amount exceeding Rs 50,000 in a financial year
A contract for sale or purchase of securities other than shares Amount exceeding Rs 1 lakh per transaction
Sale of purchase of shares of a company not listed in a recognised stock exchange Amount exceeding Rs 1 lakh per transaction
Sale or purchase of an immovable property Amount exceeding Rs 10 lakh
Sale or purchase of goods or services of any nature Amount exceeding Rs 2 lakh per transaction

If any of the above transactions are carried out in the name of a minor, the PAN to be quoted would be of his or her father, mother or guardian.

In case you don’t have a PAN and you enter in any of these transactions, you will be required to make a declaration in Form No 60 wherein you shall provide details of the transaction.

Download Form 60

A common exception for these transactions is that the rules do not apply to central government employees, state government employees, consular office employees and NRIs.

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