Transactions Where Quoting PAN is Mandatory

As per Rule 114B of the Income Tax Rules, 1962, quoting Permanent Account Number (PAN) is mandatory for certain financial transactions to curb tax evasion and ensure financial transparency.

📌 List of Transactions Requiring PAN

1️⃣ Banking & Financial Transactions

• Cash deposits exceeding ₹50,000 in a single day in a bank/post office.
• Fixed deposit of ₹50,000 or more in a bank/post office/NBFC.
• Opening a bank account, except for Jan Dhan accounts.
• Applying for a credit/debit card.

2️⃣ Real Estate Transactions

• Sale or purchase of immovable property worth ₹10 lakh or more.
• Renting property where monthly rent is ₹50,000 or more (Section 194-IB).

3️⃣ Vehicle Purchases

• Buying/selling a vehicle (excluding two-wheelers) requires PAN.

4️⃣ Stock Market & Investments

• Opening a Demat account.
• Buying/selling securities or mutual funds exceeding ₹50,000 per transaction.
• Buying/selling bonds or debentures exceeding ₹50,000.

5️⃣ Foreign Exchange Transactions

• Foreign travel or forex purchase exceeding ₹50,000.

6️⃣ Cash & Business Transactions

• Cash payments of ₹50,000 or more to a hotel or restaurant.
• Purchases of jewelry, bullion, or other goods/services exceeding ₹2 lakh.
• Cash payment of ₹50,000 or more for insurance premiums.
• Payment to mutual funds, RBI bonds, or company shares exceeding ₹50,000.

7️⃣ Loans & Borrowings

• Applying for a loan of ₹50,000 or more from a bank, NBFC, or financial institution.

🚀 Additional Points to Note

✅ If a person does not have a PAN, they must submit Form 60 instead.
✅ Businesses must quote PAN on invoices exceeding ₹2 lakh.

Quoting PAN is crucial for tax compliance and avoiding higher TDS deductions under Section 206AA. Always ensure you provide your PAN in high-value transactions to avoid legal and financial issues. 🚀

Read:What are the financial transactions covered in annual information return?