PAN - Where is mandatory to Quote

PAN (Permanant Account Number) is optional and voluntary like passport, Driving License, Aadhar card etc. PAN card is mandatory at required places like Driving License for driving and passport for foreign travels. Similarly, if persons who is required to furnish income tax return or who intend to enter into financial transaction for which it is mandatory to obtain PAN.

TRANSACTIONS WHERE PAN IS MANDATORY

1. Sale or purchase of motor vehicle or motor vehicle other than two wheeled vehicle.
2. Opening an account with a banking company or a co-operative bank.
3. Making an application for credit/debit card.
4. Opening a Demat account with depository, participant, custodian of security or any other person with SEBI.
5. Cash payment of an amount exceeding Rs. 50,000 in a hotel or restaurant against bill.
6. Cash payment exceeding Rs. 50,000 related to travel to any foreign country or payment for purchase of any foreign currency at any one time.
7. Any payment exceeding Rs. 50,000 for purchasing of Mutual Fund units.
8. Any payment exceeding Rs. 50,000 to any company or any institution for acquiring debentures or bonds issued by it.
9. Payment of an amount exceeding Rs. 50,000 to the RBI (Reserve Bank of India) for acquiring bonds issued by RBI.
10. Depositing into bank amount of Rs.50,000 and more.
11. Term deposit of amount exceeding Rs. 50,000 or aggregating to more than Rs. 5,00,000 in a financial year with –

(i) Banking company or a co-operative bank

(ii) Post Office;

(iii) Nidhi referred to in section 406 of the Companies 2013 or

(iv) Non-banking financial company

12. Cash payment towards one or more prepaid payment instruments exceeds Rs. 50,000 during financial year through cash/cheque/pay order/Banker’s cheque.
13. If the insurance premium paid to the insurer is more than Rs.50,000 during the financial year
14. A contract for buying or selling of securities (other than shares) for amount exceeding Rs. 1,00,000 per transaction.
15. Buying/selling of shares of a company not listed in a recognized stock exchange for amount exceeding Rs. 1,00,000 per transaction.
16. Buying/selling of any immovable property for an amount exceeding Rs. 10,00,000 or valued by stamp valuation authority at an amount exceeding ten lakh rupees.
17. Buying/selling of goods or services of any nature other than those specified above for an amount exceeding Rs. 2,00,000 per transaction.

PENALTY FOR VIOLATION OF PROVISION OF PAN

A penalty of Rs 10,000 can be levied u/s 272B in the following cases:-

1. If you are holder of more than One PAN. If by mistake or error, you are allotted more than one PAN then you should surrender the additional PAN card(s) immediately.
2. Quoting incorrect PAN in any document/transaction.
3. If you share incorrect PAN with the person/bank/financial institution deducting/collecting the tax.
4. If you do not obtain PAN even when you are liable to do so.

The NeuSource Startup Minds official the best Business Startup Consultant offer services like Proprietorship Firm Registration, Public Limited Company Registration, Partnership Firm Registration, OPC Registration, Business Registration, GST Registration, LLP Registration, Trademark registration, FSSAI Licence, ISO Registration, Society Registration

Lalita Sharma

"Ideas are easy but Implementation is Hard”. Neusource is the platform for making a right choice in every aspect of business that helps to grow your business and give assistance in each vital advance which causes your beginning up to create in each most ideal manner