Transactions in which Quoting of PAN is mandatory [Section 139A(5)(c) and Rule 114B]

Sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) which requires registration by a registering authority under Chapter IV of that Act, other than two wheeled vehicles.

Opening an account [other than a time-deposit referred to at Sl. No.12 and a Basic Savings Bank Deposit Account] with a banking company or a cooperative bank 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).

Making an application to any banking company or a cooperative bank 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.

Opening of a demat account with a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992).

Payment to a hotel or restaurant against a bill or bills at any one time.

Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time.

Payment to a Mutual Fund for purchase of its units.

Payment to a company or an institution for acquiring debentures or bonds issued by it.

Payment 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.

Deposit with,—

1. a banking company or a co-operative bank 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);

2. Post Office.

Cash deposits,—

1. Exceeding Rs. 50,000 during any one day; or

2. aggregating to more than Rs. 2,50,000 during the period 09th November, 2016 to 30th December, 2016.

Purchase of bank drafts or pay orders or banker's cheques from a banking company or a co-operative bank 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).

A time deposit with,—

1. a banking company or a co-operative bank 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);

2. a Post Office;

3. a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or

4. a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public.

Amount exceeding Rs.50,000 or aggregating to more than Rs. 5,00,000 during a financial year.

Payment for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under Section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007), to a banking company or a co-operative bank 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.

Payment in cash or by way of a bank draft or pay order or banker's cheque of an amount aggregating to more than Rs. 50,000 in a financial year.

Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938).

Amount aggregating to more than Rs. 50,000 in a financial year.

A contract for sale or purchase of securities (other than shares) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956).

Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange.

Amount exceeding Rs. 10,00,000 (Rs.10 Lakh) or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding Rs.10 Lakh.

Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. No. 1 to 17 of this Table, if any.

1. Where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the permanent account number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction:

2. Any person who does not have a permanent account number and who enters into any transaction specified in this rule, he shall make a declaration in Form No.60 giving therein the particulars of such transaction either in paper form or electronically under the electronic verification code in accordance with the procedures, data structures, and standards specified by the Principal Director General of Income Tax (Systems) or Director General of Income Tax (Systems).

3. The provisions of this rule shall not apply to the following class or classes of persons, namely:—

   1. the Central Government, the State Governments and the Consular Offices;

   2. the non-residents referred to in clause (30) of section 2 of the Act in respect of the transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or 10 or 12 or 14 or 15 or 16 or 17 of the Table.

4. A person who has an account (other than a time deposit referred to at S.No.12 of the Table and a Basic Saving Bank Deposit Account) maintained with a banking company or a cooperative bank 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) and has not quoted his permanent account number or furnished Form No. 60, as the case may be, at the time of opening of such account or subsequently, he shall furnish his permanent account number or Form No. 60, as the case may be, to the person specified in clause (c) of sub-rule (1) of rule 114C on or before the 28th day of February, 2017.

5. "payment in connection with travel" includes payment towards fare, or to a travel agent or a tour operator, or to an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);

6. "travel agent or tour operator" includes a person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package;

7. "time deposit" means any deposit which is repayable on the expiry of a fixed period.

Related Topics....PAN

• 1. Permanent Account Number (PAN) [Section 139A]
• 2. Quoting of Aadhaar Number [Section 139AA] w.e.f. 1.7.2017
• 3. Power delegated to the Central Government to Notify Class or Classes Persons for whom it will be obligatory to apply for Permanent Account Number (PAN) [Section 139A(1A)] :
• 4. Form Number and Documents which are required to be attached with the Application for Permanent Account Number (PAN) as per Rule 114 of Income Tax Rules, 1962
• 5. What Documents will serve as Proof Of Identity, Address and Date of Birth with application of PAN in case of individual/HUF Applicants ? [Rule 114(4)]
• 6. Transactions where Quoting of PAN is Compulsory [Section 139A(5)(c) and Rule 114B]