We Design Your Financial Destiny


(Serious) Words of Wisdom : "The stock market is a giant distraction from the business of investing." ~ John Bogle

New Limits for Quoting Your PAN Compulsorily

In case you are not aware, it is mandatory for you to quote your Permanent Account Number (PAN) for various transactions... if the transaction value exceeds the prescribed limits.

The objective is to curb black money circulation and expand the tax base.

However, with a view to reduce the compliance burden, Govt. has recently enhanced the monetary limits for PAN declaration.

Now, you will have to quote your PAN, when you exceed these revised limits.

The specified transactions — and the limits prescribed thereon — are detailed below.

a. Sale or Purchase of Immovable Property: Rs.10 lakhs (up from Rs.5 lakhs). Also, as per new guidelines, properties where valuation for Stamp Duty purposes exceeds Rs.10 lakhs, would also be covered.

b. Purchase of Vehicles (except 2-wheelers): All sales / purchases of vehicles where RTO registration is necessary (no change from the earlier guidelines).

c. Fixed Deposits: Earlier only the FDs with a "bank" and exceeding Rs.50,000 required PAN. Now, such deposits with even the co-operatives, NBFCs, Post Office and Nidhi would also be covered. Plus, deposits aggregating more than Rs.5 lakhs per year, would now require your PAN.

d. Deposit with Post Office Savings Bank: Now Discontinued (earlier limit exceeding Rs.50,000).

e. Sale or Purchase of Securities: Exceeding Rs.1 lakh (no change)

quoting-your-pan
SMILE! Higher limits for transactions where your MUST quote your PAN.

f. Opening a Bank Account: Earlier all accounts were covered. Now, the Basic Savings Bank Deposit Accounts have been "excluded" from this provision. But, henceforth, co-operative banks too will have to comply with this rule.

g. Telephone connection including mobile: Now Discontinued. (Earlier Mandatory). 

h. Hotel / Restaurant bill: When "cash" payment exceeds Rs.50,000 (earlier Rs.25,000 at any one time and by any mode of payment)

i. Bank Draft / Pay Order / Cash Deposit: Amount exceeding Rs.50,000 on any one day (no change)

j. Credit Card: Required as earlier. Even Co-operative Banks have to now comply.

k. Purchase of Mutual Funds and Bonds: Payment exceeding Rs.50,000 (no change) 

l. Life Insurance Policy: Premium exceeding Rs.50,000 in a year (no change)

m. Equity Shares: (i) On opening a demat account and (ii) on purchase of shares of an unlisted company for amount exceeding Rs.1 lakh per transaction (earlier purchase of any share exceeding Rs.50,000 was covered)

n. Jewellery or bullion: Exceeding Rs.2 lakhs per transaction (earlier limit was Rs.5 lakhs or more at any one time)

o. Foreign Travel: Cash payment exceeding Rs.50,000 at any one time (earlier amount exceeding Rs.25,000 at any one time). This will now also include the purchase of foreign currency.

p. Purchase / sale of any goods or services: Exceeding Rs.2 lakhs per transaction; regardless of the mode of payment (no such requirement earlier).

q. Prepaid cards / Cash cards: Cash payment aggregating to Rs.50,000 in a year (no such requirement earlier)

The aforesaid revised limits shall become applicable with effect from January 1, 2016.

IMPORTANT: Suppose, as per Income Tax laws, it is not necessary for you to have a PAN. Such persons, who enter into the above-mentioned transactions, would have to furnish a declaration in Form No. 60 along with their identity proof.

An Investment In Knowledge Pays The Best Interest ~ Benjamin Franklin

You Learn A Lot By READING... And Even More By SHARING.

Share Button

Ignorance is like a SIGNED BLANK CHEQUE... anyone can MISUSE it.

Subscribe via Email
Powered by Blogger.

... THREE VALUABLE TIPS ...

1. 'Stock Markets At An All-time High' Is Absolute Nonsense
All-time high at the Stock Markets
Do you believe, at current market levels, you are standing at the edge of a cliff?

 


2. Family Floater Health Policy: Insure Your Parents Separately
Family Floater Health Insurance
Wider and cheaper health cover is possible if parents are insured separately.

 


3. Herd Mentality: Why Do We Follow The Crowd? And Is It OK?
Herd Mentality: Is it good?
(Blindly) follow the crowd and your investments could suffer deep losses.