PAN to be mandatory for transactions above Rs.2 lakh
In yet another bid to curb generation of black money, quoting of the income tax Permanent Account Number (PAN) would be mandatory for cash transactions above Rs.2 lakh from January 1, 2016.
“The government received numerous representations from various quarters regarding the burden of compliance this proposal will entail. PAN will be required for transactions above Rs.2 lakh, regardless of the mode of payment,” the Central Board of Direct Taxes (CBDT) said in a statement on Thursday.
The finance ministry has also rationalised the monetary limits for certain transactions requiring mandatory quoting of PAN.
The monetary limit for sale or purchase of immovable property has been doubled to Rs.10 lakh, and that for hotel and restaurant bills to Rs.50,000.
“In dealing with domestic black money, transactions dealing with cash of more than Rs.2 lakh will require submission of PAN details,” Finance Minister Arun Jaitley told the Lok Sabha earlier this month while presenting his ministry’s supplemetary demands for grants.