The Central Government has executed a mandatory rule to quote the permanent account number (PAN) for all transactions exceeding Rs. 2 lakhs in order to hold the flow of black money.
This requirement will come into effect from 1st January 2016 and will be applicable on all sale and purchase of goods and services including all modes of payments.
This move will also have a zooming eyeball on the highly expensive household electronics gadgets,foreign holidays via tour packages, expensive jewellery and watches and also will indirectly be of maximum help to audit to catch hold of high value transaction by one particular individual by cross checking with the IT department whether the individual has declared the income or not.
Valuable tips to businessman and service providers :
It is advisable to get a copy of PAN (formally on their letterhead) from all the customers on whom they are likely to raise bills exceeding Rs 2,00,000/- .
It is also necessary to furnish PAN of buyer/service recipient on all invoices exceeding Rs. 2,00,000/- subject to verification of the their pan details.
Below list shows some changes in limits for quoting pan details:
- Sale or purchase of immovable property raised from 5 lakhs to 10 lakhs
- Restaurant bill raised from Rs.25000 to Rs.50,000 (this refers to one time bill)
- Purchase or sale of shares of an unlisted company from 50,000 to 1 lakh.
Please remember heavy penalties are prescribed for failure to comply with these requirements.
This initiative will stiff the swings of black money, not only killing corruption but also hold the flow of money laundering.
Editor : Mr.Baban Utekar
Please feel free to reach me at [email protected] for further queries if any