PAN mandatory on Rs 50,000 Cash payments, Hotel, Foreign Travel Bills

Quoting PAN will be mandatory from January 1 for opening all bank accounts except Pradhan Mantri Jan Dhan Yojana accounts as the government tightened disclosure norms to check generation of domestic black money. In keeping with the government’s thrust on financial inclusion, opening of a no-frills bank account such as a Jan Dhan account will not require PAN. Other than that, the requirement of PAN applies to opening of all bank accounts including in co-operative banks. 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 purchasing of jewellery or bullion, a major source of blackmoney, quoting of PAN would be required if the sum involved is Rs 2 lakh per transaction. Currently, it is required for transaction of Rs 5 lakh and above. PAN will also be mandatory for cash payment made to settle hotels bills or for buying foreign travel tickets of Rs 50,000. 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. PAN would also be mandatory for cash payments...

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