Are you going to buy jewelry? Or do you have to pay your hotel bills exceeding Rs. 50,000? If yes, then make sure you are carrying your PAN card. Finance Ministry has made it mandatory to furnish Permanent Account Number (PAN) or PAN card mandatory while making cash transactions over Rs. 50,000. This attempt has been made to curb the circulation of black money.
If you are going to make any such transactions, then you have reached the right place. Read on to find out in which transactions PAN card is mandatory starting January 1, 2016.
Transactions Where Furnishing PAN Card Is Mandatory
Following are the transactions where quoting PAN is mandatory w.e.f. January 1, 2016.
- Cash Transactions such as paying hotel bills or travel bills over Rs. 50,000 at one time.
- Purchase of jewelry above Rs. 2 lakhs in cash or through card.
- Sale or purchase of immovable property of over Rs. 10 lakhs.
- Term Deposit exceeding Rs. 50,000 at one go or Rs. 5 lakhs in a year with Co-op banks, Post Office, Nidhi, NBFC companies.
- Sale and purchase of shares of unlisted companies for Rs. 1 lakh and above.
- While opening all bank accounts except Pradhan Mantri Jan Dhan Yojana accounts.
- Cash purchase of bank drafts/ pay orders/ banker’s cheques exceeding Rs.50,000 in a single day.
- Cash payment for cash cards or prepaid instruments of above Rs.50,000 in a year.
- Purchase or sale of goods or services of over Rs.2 lakh per transaction.
- Cash deposit exceeding Rs.50,000 in a day.
- Purchase of foreign currency of an amount exceeding Rs.50,000 at any one time.