Starting Today: PAN Mandatory For Transactions Above Rs 2 Lakhs

BENGALURU: In yet another bid to curb generation of black money, quoting of the income tax Permanent Account Number (PAN) would be mandatory for cash transactions above 2 lakh from January 1, 2016.

“The government received numerous representations from various quarters regarding the burden of compliance this proposal will entail. PAN will be required for transactions above 2 lakh, regardless of the mode of payment,” the Central Board of Direct Taxes (CBDT) said in a statement on Thursday.

The finance ministry has also rationalised the monetary limits for certain transactions requiring mandatory quoting of PAN.

The monetary limit for sale or purchase of immovable property has been doubled to 10 lakh, and that for hotel and restaurant bills to 50,000.

“In dealing with domestic black money, transactions dealing with cash of more than 2 lakh will require submission of PAN details,” Finance Minister Arun Jaitley told the Lok Sabha earlier this month while presenting his ministry’s supplementary demands for grants.

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