Tighter PAN norms for high value transactions

0

If you are in a job and getting a salary which is taxable, it is definite that you have a PAN card. PAN card is the Permanent Account number. It is unique 10 digits alphanumeric identity, which has been provided to every taxpayer by the Income Tax Department. This is pursued under the supervision of the CBDT. CBDT is the Central Board of Direct Taxes. It is definitely an identity proof provided to all the taxpayers which aid them.  However, it is not a proof of being an Indian citizen, since it is also issued to the foreign nationals. The primary aim of issuing a PAN card is to keep a check on tax evasion. It has lifetime validity. Another important aspect of the PAN card is that even if your address alters it does not need you to change the PAN. Lets us go into details of PAN norms.

How can you get a PAN card?

If you want to obtain your PAN card you need to submit the PAN application to the authorized agency of the district. You can at the same time, apply through the online website of NSDL. You will be required to submit two passport size photographs, address proof, date of birth and the fee required for it. If you are getting a re-issue of a PAN card, then along with all the above documents and papers you also require the photocopy of your old PAN. In fact, if you have the Aadhar card it is also imperative to provide with the details of the same so that PAN gets linked to the Aadhar. In order for you to get the PAN card, it takes a time period of 10-15 days.

There has been a tightening of the norms of the PAN.

What are the latest PAN norms?

In accordance with the latest and stricter norms for PAN, the individuals need to quote their PAN for transactions which fall into the category of high value. This has come into effect from January 1.  The following examples will further clarify the picture:-

  1. Earlier it was imperative to quote the PAN for an amount of more than Rs.5 lakhs in the purchase of property, however, now the amount has been increased to 10 lakhs.
  2. In a Post Office savings account, no need for the depositors to quote the PAN number of depositor above Rs. 50,000/-.
  3. There is no PAN retails requirement for telephone or mobile connections.
  4. The cash payments of Rs. 50,000 and above for hotel and restaurant bills will only require quoting of PAN details.
  5. Increasing PAN activity monitoring and analysis software to aid the Department to keep a tab on the PAN details and life cycle of every individual.

What will be the impact of new PAN norms?

There will not be any negative impact of the stricter PAN norms on the taxpayers who file their tax return. It will only be curbing those who utilize the unlawful way of financial transaction.

Share.

About Author

mm

Money Dial is your destination to gain knowledge and earn greater returns in the world of financial market. Through Money Dial, we aim to help you sail smooth in your finances, rise high on returns and invest on success with tips, advice and market gyaan. Whenever you need a little extra help, our team of financial experts is here to guide you through the complex financial world by simplifying it and providing expert solutions to your problems.

Leave A Reply