PAN compulsory from today
Posted on: 01/Jan/2016 12:56:02 PM
The Income tax department has announced that PAN cards are not required for opening Savings accounts in banks.
The Income Tax Department has carried out the list of occasions where PAN cards are compulsorily required as per Income Tax Law Section 114B. This will be effective from 1st January, 2016.
The central government introduced new regulations in order to check the circulation of black money and also to increase the number of Income Tax payers.
As per this, if payments exceeding Rs. 50000/- are paid on Hotel Bills or Flight-ticket booking, PAN card number must be entered.
PAN card numbers must be entered when
- Jewellery worth more than Rs. 2 Lakhs is bought
- Fixed assets worth more than Rs. 10 Lakhs are bought
- Payments over Rs. 50000/- are made for cash cards,
- Shares of unlisted companies are bought for more than Rs. 1 Lakh
20 money transactions including the above will require PAN Card number to be entered.
This becomes effective from today (Friday, 1st January, 2016).
A tabular form categorising transaction, old system & New system has been made available.
