The legislature has made it mandatory to cite PAN (Permanent Account number) for all exchanges in abundance of Rs.2 lakh, indifferent to the method of installment, to control black money.
The new rule, will cover procurement of all products or services, for example, say gold adornments or furniture, Revenue Secretary, Hasmukh Adhia told columnists. This incorporates all installments made through money, checks or charge or Visas. On account of steady property, where citing PAN is as of now required for exchanges of Rs.5 lakh, the legislature has chosen to raise as far as possible to Rs.10 lakh. It raised as far as possible to Rs.50,000 from Rs.25,000 on account of lodging or eatery bills paid at any one time, and for bills because of abroad travel. The limit is being raised to Rs.1 lakh from Rs.50,000 for purchases or sale of shares of an unlisted organization.
The opening of a no-frills bank account, such as a Jan Dhan account, will not require PAN, he said. Other than that, the requirement of PAN applies to an opening of all bank accounts including the co-operative banks. Those who do not hold PAN would have to fill a form and furnish any one of a specified list of documents to establish their identity, according to a press statement.
One of the suggestions of the Special Investigation Team on black money was to make PAN obligatory for all deals and buys of merchandise and ventures over one lakh. Association Finance Minister Arun Jaitley had acknowledged this suggestion and declared in his Budget discourse not long ago that it will be informed. The administration would like to decrease the utmost to Rs.1 lakh in the end and afterward make citing PAN obligatory for all money exchanges.