There are various financial transactions in which attaching your PAN card details is mandatory. These exceptions are specified under Rule 114B of the Income tax rules, 1
962 which came into effect from 01, Nov, 1988.
There are 18 transaction which require your PAN Card details.
- Sale/purchase of Motor vehicle as specified under Motor vehicle act, 1988 requires PAN card number.
- Opening of Bank A/c with a banking company or a co-operative bank which are regulated by banking regulation act, 1949.
- Making an application to a banking company/financial institution/co-operative bank for the issuance of Credit or Debit card.
- Opening of Demat A/c under SEBI Act, 1992.
- Paying your bill at a hotel/restaurant (Cash payment more than INR 50,000)
- Payment in relation to traveling to any foreign country or currency exchange for the same. (Cash payment exceeding INR 50,000)
- Mutual fund payment for purchasing additional unit. (Amount exceeding INR 50,000)
- Payment to acquire bonds/debentures of a company. (Amount exceeding INR 50,000)
- Purchase of bonds issued by RBI. (Amount exceeding INR 50,000)
- Deposit with a banking company/co-operative bank/post office regulated by banking regulation act, 1949. (Cash deposit exceeding INR 50,000)
- Purchase of Demand deposit/Pay order/bankers cheque from a banking company/co-operative bank regulated by banking regulation act, 1949. (Amount exceeding INR 50,000)
- Time deposit with a banking company/co-operative bank/Post office/Nidhi company/NBFC. (Amount exceeding INR 50,000 or amount exceeding INR 5,00,000 during a financial year)
- Any pre-paid payment instrument as defined by RBI under Payment & settlements act, 2007.
- Premium of Life Insurance premium paid. (Amount exceeding INR 50,000 during a financial year)
- Sale/purchase of securities under Securities contracts act, 1956. (Amount exceeding INR 1,00,000)
- Sale/purchase shares of a company not listed on stock exchange. (Amount exceeding INR 1,00,000)
- Sale/purchase of any immovable property. (Amount exceeding INR 10 lakh)
- Sale/purchase by any person of goods/service of any nature except those mentioned from 1 to 17. (As notified by the central government).
IMPORTANT POINTS TO REMEMBER
- When a person involved in any of the above-mentioned transactions, is a MINOR & does not have any income chargeable to income tax, he/she should mention the PAN Card details of father/mother/guardian.
- Anyone who does not have a PAN Card and enters into any of the above-mentioned transactions must fill Form No. 60 as per Rule 114B of Income-tax act, 1962.
- Note PAN Card details in case of Tax deduction at source i.e. TDS or Tax collection at source i.e. TCS under section 139 [5b &5c] respectively.
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