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