PAN - Mandatory for certain transactions

From time to time we often hear about PAN being mandatory for several transactions. The main aim of bringing these provisions are

  • to widen the tax base
  • to detect high value transactions that might escape tax
  • curb black money
  • to keep audit trail on persons with luxary life style and cross check their income tax returns

We try to bring all such provisions into one place:-

Nature of Transaction Effective Period Monetary Limits Reference
All transactions in all modes of payment,
especially Sale and Purchase of Goods and Services
from Jan 1, 2016 Above Rs. 2.00 Lakhs  
Purchase of Immovable Property from Jan 1, 2016 Rs. 10.00 Lakhs or more  
earlier Rs. 5.00 Lakhs or more  
Purchase of Cars, Vehicles   No Limit  

Purchase of Cash or Prepaid Cards
(Gift vouchers, Prepaid cards in clubs,
travel agencies, etc)

  Rs. 50,000/- or more  
Purchase of Gold Jewellery   Above Rs. 2.00 Lakhs  
Cash payment at Hotel or Restaurant from Jan 1, 2016 Rs. 50,000/- or more  
earlier Rs. 25,000/- or more  

All fixed deposits with post offices,
cooperativebanks, Nidhis,
non-banking finance companies

  Above Rs. 2.00 Lakhs  

All Bank accounts opened including those
at Co-operative Banks - except Jan dhan Account
(No frills Savings Account)

Cash Expenses related to Foreign Travel
like purchase of forex
from Jan 1, 2016 Rs. 50,000/- or more  
earlier Rs. 25,000/- or more  
Opening a Telephone connection from Jan 1, 2016 Not required  
earlier Required