As we know that PAN card has now become an essential document for almost every financial transaction. Generally, PAN is a 10-digit unique alphanumeric number issued by the Income Tax Department. PAN card enables the Income Tax Department to link each transaction of the assessee. These transactions include TDS/TCS credits, tax payments, specified transactions, returns of income, correspondence and so on.
All these transactions facilitate easy retrieval of the assessee information and matching of several borrowings, investments, and other business activities.
Financial Transactions Quoting PAN Card Mandatory
The Income Tax Department said that as per Rule 114B, the below-listed transactions require quoting of PAN by every person except the State Governments, the Central Government, and the Consular Offices.
1. Purchase and sale of a motor vehicle.
2. Opening a bank account [other than a time-deposit referred at point No. 12 and a Basic Savings Bank Deposit Account] with a co-operative and/or a banking company.
3. Submitting credit or debit card issue applications.
4. While opening a Demat account with a participant, depository, custodian of securities or other people concerned to SEBI.
5. At the time of making a transaction in cash of more than Rs. 50,000. For instance; paying Mutual Fund for the purchase of its units, paying to an institution or a company for acquiring bonds or debentures, etc.
6. Making a deposit of cash exceeding Rs. 50,000 to any banking company or a cooperative bank in a single working day.
7. A contract for purchase or sale of securities (excluding shares) for an amount exceeding Rs. 1 lakh per transaction.
8. Purchase and/or sale of any immovable assets for amount exceeding Rs. 10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
People may also note that the minor person can quote the PAN of his mother, father or guardian if he does not have any income chargeable to income-tax. Persons who do not have PAN and enters into any of the above transactions may need to make a declaration in Form No.60.