Skip to main content

Amendment of Income Tax Rule of PAN for specified transactions

Amendment of Income Tax Rule of PAN for specified transactions

The CBDT   has announced that Rule 114B of Income Tax, relating to quoting of PAN for specified transactions, has been amended effective from 1st Jan., 2016.

Why such amendment?

·         To bring a balance between burden of compliance on legitimate transactions and the need to capture information relating to transactions of higher value.

·         To enhance limits of specified transactions for mandatory quoting of Permanent Account Number (PAN).

·          Expected to be useful in widening the tax net by non-intrusive methods.

·          Expected to help in curbing black money and move towards a cashless economy.

The Income Tax Deptt and Govt. collects information of certain types of transactions from third parties in a non-intrusive manner, to curb the circulation of black money and widening of tax base, and hence there is a requirement of quoting of PAN in certain specified transactions of the amount beyond certain limits.

What if you don’t have PAN?

 Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity.

Background :

One of the recommendations of the Special Investigation Team (SIT) on Black Money was that quoting of PAN should be made mandatory for all sales and purchases of goods and services where the payment exceeds Rs.1 lakh. Accepting this recommendation, the Finance Minister made an announcement to this effect in his Budget speech.

The Government has since received numerous representations from various quarters regarding the burden of compliance this proposal would entail. Considering the representations, it has been decided that quoting of PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment.

What are the  monetary limits for quoting of PAN ?

1. For sale or purchase of immovable property : from Rs. 5 lakh to Rs. 10 lakh

2. In the case of hotel or restaurant bills paid at any one time : from Rs. 25,000 to Rs.50,000

3. For purchase or sale of shares of an unlisted company : from Rs. 50,000 to Rs. 1 lakh.

In keeping with the Government’s thrust on financial inclusion, opening of a no-frills bank account such as a Jan Dhan Account will not require PAN.

Other than that, the requirement of PAN applies to opening of all bank accounts including in co-operative banks.

The changes to the Rules will take effect from 1st January, 2016. 


Labels:

Comments

Post a Comment

Popular posts from this blog

Inland Waterways in India

Here are some key points you need to know: The bill seeks to add 106 inland waterways to the existing six National Waterways on the recommendations of the Parliamentary Standing Committee on Transport, Tourism and Culture and comments of several state governments The bill will also look after the renovation and maintenance of the existing waterways Out of the 106 new waterways, 18 have already been identified. These include five waterways each from Karnataka and Meghalaya, three each from Maharashtra and Kerala, one each from Tamil Nadu and Rajasthan The bill also aims to help the Inland Waterways Authority of India (IWAI) to develop the feasible stretches for Shipping and Navigation. Let us look at the six existing National Waterways in India: National Waterway 1 (NW1) The National Waterway No. 1 uses a 1,620-kilometre stretch of the Ganges River. It was declared a national waterway in the year 1986 and runs from Allahabad in Uttar Pradesh to Haldia in West Bengal....
Post a Comment
Read more

Sessions of Indian National Congress

Sessions of Indian National Congress:: Year Venue President 1885, 1882 Bombay , Allahabad W.C.Bannerji 1886 Calcutta Dadabhai Naoroji 1893 Lahore " 1906 Calcutta " 1887 Madras Badruddin Tyyabji (fist Muslim President) 1888 Allahabad George Yule (first English President) 1889 Bombay Sir William Wedderburn 1890 Calcutta Sir Feroze S.Mehta 1895, 1902 Poona , Ahmedabad S.N.Banerjee 1905 Banaras G.K.Gokhale 1907, 1908 Surat , Madras Rasbehari Ghosh 1909 Lahore M.M.Malviya 1916 Lucknow A.C.Majumdar (Re-union of the Congress) 1917 Calcutta Annie ...
Post a Comment
Read more

Environment Ministry notifies revised standards for Common Effluent Treatment Plants

Environment Ministry notifies revised standards for Common Effluent Treatment Plants (CETPs) Across industrial clusters-PIB CETP • The concept of common effluent treatment plant has been accepted as a  solution for collecting, conveying, treating, and disposing of the effluents  from the industrial estates. • The effluent include industrial wastewaters and domestic sewage generated  from the estate. • This CETP concept helps small and medium scale industries to dispose of  their effluents. Otherwise it may not be economical for these industries to  treat their wastewaters or there may be space constraints. • Some of these industries may require to give preliminary treatment (for  removal of solids) so that the receiving sewers can be maintained free  flowing. • It may be required to correct pH or removal of specific pollutant before the  industry discharges in CETP. CETP • CETP is designed on the basis of: – Quality and flow rate of the wastewa...
Post a Comment
Read more