Today we discuss on the necessity of the Pan card on all transaction after 01st January 28, 2016.This are the most affected and general transaction added in the Rule which are not previously. Pan card is mandatory for doing investments,doing expenses and also for some KYC proof. But after this new amendment pan card needed in purchase and sale bill if bill made more than Rs 2 laks. the requirements of pan card has been widened by the goverment. the new requirement of pan card will also help modi goverment to make control on black money.
New Requirements of Quoting the Pan cards –
1 )Any Purchases or sales of goods or services more than Rs 2 laks per transaction – If you have made any single sale or service bill than Pan Number is mandatory on the bill as well as If you have made any single purchase or service bill than Pan number is mandatory on the bill. Note goods include Jewellery. Note this provision is for single bill if multiple bill made of the same party on different days with less than 2 lakhs than Pan card number not necessary to mentioned in the bill.
2) Payment made in cash for Cash cards/ prepaid instruments (issued under Payment & Settlement Act) for more than Rs 50,000 in a year.
Also in following things Pan card will be needed –
Pan Card mandatory for following Investments –
1 Sale/ Purchase of Immovable property exceeding Rs.10 lakh. Note – Properties valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also need PAN
2 Sale/ purchase of Motor vehicle (other than two wheeler)
3 Time deposit with Co-op banks, Post Office, Nidhi, NBFC companies, banks also need PAN if aggregate amounts exceed Rs 5 laks.
4 Sale or purchase of securities for more than Rs 1 laks
5 Cash purchase of bank drafts/ pay orders/ banker’s cheques more than Rs.50,000/- on any single day
6 Cash deposit with banking company more than Rs.50,000/- on any single day
7 Payment more than Rs.50,000/- for purchase of Mutual fund
8 Purchase or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh per transaction
9 Purchase of Debentures/ bonds or RBI bonds for payment more than Rs 50,000/-
Pan card is needed for following expenses –
1 Cash payment exceeding Rs.50,000/-. For Hotel/restaurant bill(s)
2 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 traveling)
Pan card is needed for following applications
1 Opening a Demat account;
2 Application for Credit card
5 Opening bank accounts in a bank other than basic saving bank deposit accounts and account open under Jan Dhan Yojna.