Don’t do any of these 18 type of transactions traceable through your Quoting of PAN number

Hiding black money has now become difficult with the Indian government’s recent demonetization drive wherein it has mandated the Quoting of PAN for cash deposits with Bank and Post Offices with a view to monitor the same for a possible tax evasion.

PAN is a ten-digit alphanumeric number issued by the IT Department. It functions as a national identification number of the taxpayer, which has to be quoted on the return of income and in all correspondences with the Department.

Income Tax Department is keeping watch on all your financial transactions whether buying or selling of shares, buying luxury car, buying or selling of house property, or just buying anything for Rs 2 lacs or above through use of PAN Card. Be sure to have impeccable accounts to support the buying

Quoting of PAN is mandatory in various financial transactions. Since it is linked to an individual’s bank account, the IT Department can track all the transactions in all the bank accounts of a person.

Following are the transactions in which quoting of PAN is mandatory by every person except the Central Government, the State Governments and the Consular Offices:

1. Sale or purchase of a motor vehicle or vehicle other than two wheeled vehicles.
2. Opening an account with a banking company or a co-operative bank[other than a time-deposit referred at point No. 12 and a Basic Savings Bank Deposit Account]
3. Making an application for issue of a credit or debit card.
4. Opening of a demat account with a depository, participant, custodian of securities or any other person with SEBI
5. Payment in cash of an amount exceeding Rs. 50,000 to a hotel or restaurant against bill at any one time.
6. Payment in cash of an amount exceeding Rs. 50,000 in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time.
7. Payment of an amount exceeding Rs. 50,000 to a Mutual Fund for purchase of its units
8. Payment of an amount exceeding Rs. 50,000 to a company or an institution for acquiring debentures or bonds issued by it.
9. Payment of an amount exceeding Rs. 50,000 to the Reserve Bank of India for acquiring bonds issued by it.
10. Deposits of cash exceeding Rs. 50,000 during any one day or aggregating to more than two lakh fifty thousand rupees during the period November 09, 2016 to December 30, 2016 with a banking company, cooperative bank or a post office.
11. Payment in cash for an amount exceeding Rs. 50,000 during any one day for purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank.
12. A time deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5 lakh during a financial year with –
    1. a banking company or a co-operative bank
    2. a Post Office;
    3. a Nidhi referred to in section 406 of the Companies Act, 2013 or
    4. a Non-Banking Financial Company
13. Payment of an amount aggregating to more than Rs. 50,000 to a banking company or a co-operative bank or to any other company or institution in cash or by way of a bank draft or pay order or banker’s cheque in a financial year for one or more pre-paid payment instruments issued by Reserve Bank of India needs quoting of PAN
14. Payment of an amount aggregating to more than Rs. 50,000 in a financial year as life insurance premium to an insurer calls for quoting of PAN
15. A contract for sale or purchase of securities (other than shares) for amount exceeding Rs. 1 lakh per transaction
16. Sale or purchase, by any person, of shares of a company not listed in a recognized stock exchange for amount exceeding Rs. 1 lakh per transaction requires quoting of PAN
17. Sale or purchase of any immovable property for an amount exceeding Rs. 10 lakh or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees.
18. Sale or purchase of goods or services of any nature other than those specified above for an amount exceeding Rs. 2 lakh per transaction demands quoting of PAN

Therefore it is advised to be careful while involving in the financial transactions mentioned above as your PAN is being monitored and the Income tax department is spying on you. With more than a lakh retired IT department employees called back for the upcoming IT scrutiny, you better be cautious in taking every single step that involves your money.