Transactions which require quoting of PAN

CA Bhawna Dua , Last updated: 06 December 2023  
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 (Section 139(5)(c))

PAN is a basic necessity which requires to be have as per Income Tax Act, 1961. Not quoting of PAN attracts many penalties and also keeping of PAN more than one also attract penalty of Rs. 10,000 so before to enter into any transaction it must be understood that quoting of PAN is required in the following 18 Transactions and also it should be kept in mind that such a TDS can be claimed while filing the Income Tax Return of that relevant previous year. Following is the list of the transactions that require quoting of PAN. 

S.No

Category

Description

Quoting of PAN is not required

1.

MOTOR VEHICLE

Sale or purchase of a motor vehicle or vehicle other than Two-Wheeled Vehicle

TWO WHEELED VEHICLE

2.

Opening of account with Bank/Co-operative Bank

Opening of an Account (Except Time Deposit mentioned below and Basic Savings Bank Deposit Account) with a Banking Company/Co-Operative Bank

BASIC SAVINGS DEPOSIT A/C WITH BANKING CO./ CO-OPERATIVE BANK

3.

Time deposit

ATime Deposit with

>>Banking Co./Co-Operative Bank

>> Post Office

>> Nidhi Company as per Companies Act, 2013

>> NBFC licensed by RBI

If Amount >Rs 50,000 or Aggregating >Rs 5 lakh in a FY

IF AMOUNT IS LESS THAN OR EQUAL TO RS 50,000 OR LESS THAN OR EQUAL TO RS. 5LAKH IN A FY

4.

Opening of a Demat Account

Opening of Demant A/c with >> Depository

>> Participant

>> Custodian of Securities

>> Other Person registered with SEBI

-

5.

Credit/Debit Card

Making an application to issue a Credit/Debit card

-

Payment Exceeding Rs. 50,000 requires quoting of PAN

6.

Bank Draft/ Pay Order/ Banker’s Cheque

Purchase of Bank Draft/ Pay Order/ Banker’s Cheque from Banking Company/ Co-Operative Bank.

If Cash Payment During Any Day >Rs. 50,000

CASH PAYMENT IS LESS THAN OR EQUAL TO RS. 50,000 IN A DAY OR ANY MODE OF PAYMENT OTHER THAN CASH

7.

Cash Deposit

Cash Deposit in Banking Company/Co-Operative Bank or in Post Office during any 1 Day.

If Cash Deposit During Any Day >Rs. 50,000 or Rs. 2.5 Lakh in aggregate during the demonetization period i.e. from 09th November 2016 to 30th December 2016

CASH DEPOSIT IS LESS THAN OR EQUAL TO RS. 50,000 IN A DAY

8.

Purchase of Mutual Fund unit(s)

Purchase of Mutual Fund units >Rs. 50,000 through any mode of payment

PAYMENT IS LESS THAN OR EQUAL TO RS. 50,000 THROUGH ANY MODE INCLUDING CASH.

9.

Acquisition of Debentures/bonds

Acquisition of Debentures/ Bonds of a Company/ Institution issued by it

>Rs. 50,000 through any mode of payment

PAYMENT IS LESS THAN OR EQUAL TO RS. 50,000 THROUGH ANY MODE INCLUDING CASH.

10.

Purchase of Bonds issued by RBI and purchased from RBI

Acquisition of Bonds issued by RBI and payment is also made to RBI which exceeds Rs. 50,000 through any mode of payment

PAYMENT IS LESS THAN OR EQUAL TO RS. 50,000 THROUGH ANY MODE INCLUDING CASH.

11.

Prepaid payment Instruments

Payment in Cash/ Bank Draft/ Pay Order/ Banker’s Cheque of an amount >Rs. 50,000 aggregate in a financial year for one or more prepaid payment instruments (As defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India u/s18 of the Payment and Settlement Systems Act, 2007) to a Banking Company/Co-Operative Bank/ to Any Other Company/ Institution.

Payment is less than or equal to Rs. 50,000 in a FY through any mode including cash.

12.

Hotel/Restaurant

Cash Payment exceeding Rs. 50,000 to Hotel/Restaurant against Bill(s) at any one time

 

CASH PAYMENT LESS THAN OR EQUAL TO RS. 50,000 OR ANY MODE OF PAYMENT OTHER THAN CASH

13.

Foreign Country Travel / Purchase of Foreign Currency

Cash Payment exceeding Rs. 50,000 in connection with Travel to Any Foreign Country or Purchase of Foreign Currency at Any One time

CASH PAYMENT IF LESS THAN OR EQUAL TO RS. 50,000 OR ANY MODE OF PAYMENT OTHER THAN CASH AT ONE POINT OF TIME

14.

LIC Premium paid

Payment > Rs. 50,000 for LIC Premium made to Insurer in a FY

 PAYMENT IS LESS THAN OR EQUAL TO RS. 50,000 IN A FY THROUGH ANY MODE INCLUDING CASH.

Amount Exceeding Rs. 1,00,000 requires quoting of PAN

15.

Sale/Purchase of Securities(except Shares)

Contract for sale/purchase of securities (except shares) as defined in SCRA Act, 1956, amounting to more than Rs. 1 Lakh per transaction

TRANSACTION IS LESS THAN RS. 1 LAKH THROUGH ANY MODE INCLUDING CASH

16.

Sale/Purchase of Unlisted Shares

Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange, amounting to more than Rs. 1 Lakh per transaction

 TRANSACTION IS LESS THAN RS. 1 LAKH THROUGH ANY MODE INCLUDING CASH

Amount Exceeding Rs. 10 Lakh requires quoting of PAN

17.

Sale/Purchase of Immovable Property

>>Sale/Purchase of 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 10 LakhRupees.

 SALE/PURCHASE OF IMMOVABLE PROPERTY EQUAL OR LESS THAN RS. 10 LAKH THROUGH ANY MODE INCLUDING CASH

Amount Exceeding Rs. 2 Lakh requires quoting of PAN

18.

Sale/Purchase of Any Goods/Services

Sale or Purchase, by any person, of goods or services of any nature other than those specified above exceeding Rs. 2 Lakh per Transaction

SALE/PURCHASE PER TRANSACTION LESS THAN 2 LAKH THROUGH ANY MODE INCLUDING CASH 

 
 

Published by

CA Bhawna Dua
(Practicing Chartered Accountant in Delhi NCR)
Category Income Tax   Report

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