From 1st Jan onwards, PAN must while settling hotel bills over Rs 50000
From 1st Jan, PAN necessary for following:
- Buying immovable property for purchase of over Rs 10 lakh
- Hotel bills/foreign tickets cash payments of over Rs 50,000
- for opening all bank accounts (including demat accounts) except under Pradhan Mantri Jan Dhan Yojana
PAN (Personal Account Number) will be mandatory from January 1 for cash payment made to settle hotels bills or for buying foreign travel tickets of Rs 50,000 as the government tightened disclosure norms to check generation of domestic black money.
The PAN requirement for non-luxury cash transactions will be Rs 2 lakh. However, in a relief to small investors, the requirement of furnishing PAN for making post-office deposit of over Rs 50,000 has been dispensed with.
The PAN will also be mandatory on purchase of immovable property of Rs 10 lakh. This will be a relief to small home buyers as previously the government had proposed to make PAN quoting mandatory for purchase or sale of Rs 5 lakh.
Unveiling the new norms, Revenue Secretary Hasmukh Adhia said the purchasing of jewellery or bullion, a major source of black money, quoting of PAN would be required if the sum involved is Rs 2 lakh per transaction. At present, it is required for transaction of Rs 5 lakh and above.
The PAN would also be mandatory for cash payments of more than Rs 50,000 for cash cards or prepaid instruments as well as for acquiring shares of unlisted companies for Rs 1 lakh and above.
It has also been mandatory for opening all bank accounts except Pradhan Mantri Jan Dhan Yojana accounts, he said. The relief also includes discontinuation of requirement of PAN for installation of basic landline or cellphone connection.
In the Lok Sabha, Finance Minister Arun Jaitley said the government would soon issue a notification making quoting of PAN mandatory for all cash and card transactions above Rs 2 lakh.