New PAN rule comes into effect from January 1

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In an attempt to curb black money and to spread the tax base, the Centre had changed the rules of using PAN card, which will be effective from Friday. Now, quoting the PAN will be mandatory for cash payment to settle hotel bills or buying foreign travel tickets of and above Rs 50,000.

New Delhi: Quoting the Permanent Account Number (PAN) for cash/card transactions above Rs 50,000 will be mandatory from Friday.

The initiative has been taken by the Centre to curb the black money issue and to widen its tax reach among the people.

Earlier, in a notification issued by the Union Finance Ministry, it was mentioned - PAN will be a must for all transactions, including purchase of jewellery, above Rs 2 lakhs in cash or through card with effect from January 1, 2016.

Those who will buy immovable property above Rs 10 lakh will be required to show his/her PAN details. This will be a relief to small home buyers as previously the government had proposed to make PAN mandatory for property worth Rs 5 lakh.

Quoting of PAN will also be mandatory for term deposits exceeding Rs 50,000 at one go or Rs 5 lakh in a year with banks, Post Offices and NBFCs.

The other areas where revealing PAN details will be mandatory are: while acquiring shares of unlisted companies for Rs 1 lakh and above, opening bank accounts except Pradhan Mantri Jan Dhan Yojana (PMJDY).

Those who want to deposit more than Rs 50,000 or purchase of bank draft, pay orders, bankers cheque of equal denomination will now be required to submit the PAN details.