Friday, September 21, 2012

PAN:- Nature of Financial Transactions for quoting Compulsory PAN

Financial   transactions   where   quoting   of   PAN   is mandatory

It is compulsory to quote PAN in all documents pertaining to the following financial transactions :-


(a)   sale or purchase of any immovable property valued at five lakh rupees or more;

(b)       sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detach¬able side-car having an extra wheel, attached to the motor vehicle;

(c)        a time deposit, exceeding fifty thousand rupees, with a banking company ;

(d)       a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;

(e)       a contract of a value exceeding one lakh rupees for sale or purchase of securities;

(f)        opening a bank account;

(g)       making an application for installation of a telephone connection (including a cellular telephone connection);

(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ;

(i) payment in cash for purchase of bank drafts or pay orders or banker's cheques for an amount aggregating fifty thousand rupees or more during any one day;

(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;

(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.

(l) making an application to any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card;

(m) payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units;

(n) payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;

(o) payment of an amount of fifty thousand rupees or more to a company or an institution for acquiring debentures or bonds issued by it;

(p) payment of an amount of fifty thousand rupees or more to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) for acquiring bonds issued by it;

(q) payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938);


(r)    payment to a dealer,
           (i)    of an amount of five lakh rupees or more at any one time; or

        (ii)    against a bill for an amount of five lakh rupees or more, for purchase of bullion or jewellery:


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