Quoting of Permanent Account Number in Returns, Certificates and Correspondence with any Income Tax Authority

After demonetisation, there is a fear in everyone’s mind whether to submit their PAN  to certain department or not or whether this transaction requires submission of PAN or not.

To end this concern, lets discuss Rule 114B of the Income Tax Rules wherein a list of all the transactions are specified which requires the necessity to quote PAN.

1. If you are opening a bank account (other than time deposit and a basic Savings Bank deposit Account) with a bank or co-operative bank and making a application to a bank for credit or debit card then for all such transactions PAN is required.
2. If you are selling your motor vehicle other than two wheeler then for every such transaction PAN is required.
3. If you active on shares market or mutual funds then in the following cases:
   a) Opening a Demat Account – for all such transactions
   b)Payment to Mutual Fund `for purchase of its unit- Amount Exceeding Rs. 50,000/-
   c) Payment to a company n institution for acquiring debentures/ bonds-Amount Exceeding Rs. 50,000/
   d) Payment to RBI for bonds – Amount Exceeding Rs. 50,000/-
   e) A contract for sale or purchase of securities- Amount Exceeding Rs.1,00,000/- per transaction
   f) Sale or purchase of shares in a company not listed in a recognised stock exchange – Amount Exceeding Rs.1,00,000/- per transaction
4. If you are making a payment to a hotel or restaurant against a bill or bills at any one time – Payment in cash of an amount exceeding Rs. 50,000/-.
5. If you are making a payment in connection with travel to any foreign country or purchasing foreign currency at any one time –  Payment in cash of an amount exceeding Rs. 50,000/-.
6. If you are making a deposit and time deposit with the bank/post office in cash or purchasing bank drafts, pay orders or cheque from bank a  then PAN is required for an amount exceeding Rs. 50,000/- during any one day. 
7. Making of life insurance premium to an insurer – Amount aggregating to more than Rs.50,000/- in a financial year.
8. In case of sale or purchase of any immovable property – Amount exceeding Rs. 10,00,000/- .
9. In case of Sale or purchase of goods or services of any nature other than specified above if the amount exceeds Rs. 2,00,000/- per transaction. 

Apart from above, every person receiving any income from which tax has been deducted shall intimate his PAN to the person responsible for deducting tax.

Conclusion : Hence, in case of any of the above transaction, quoting of Permanent Account Number is mandatory.