Cash transaction without pan number
Querist :
Anonymous
(Querist) 27 September 2011
This query is : Resolved
1) Whats the legal implication if cash transaction done of more than 50,000 Rs without having PAN Card?
2) Since when this PAN is made mandatory for Indian citizens?
Sailesh Kumar Shah
(Expert) 27 September 2011
1)Its depend upon case to case basis.
e.g. In Bank transaction, it is mandatory whereas if you purchase tv for rs.55,000, shopkeeper would not ask for pan.
2) No, there is no law, which say that PAN is made mandatory for indian citizens.
Raj Kumar Makkad
(Expert) 27 September 2011
It has been made mandatory for every citizen of India to quote his PAN no. while dealing with bank for a transaction having value of more than Rs. 50,000/-.
ajay sethi
(Expert) 27 September 2011
agree with makkad
malipeddi jaggarao
(Expert) 28 September 2011
This is mandatory in banking transactions to track the fund. It is a measure under Anti-Money Laundering Act.
prabhakar singh
(Expert) 29 September 2011
i go with Mr. Shah who has with preciseness clarified correctly your both doubts point wise.
Others have though answered correctly but have not entertained the whole query.
Guest
(Expert) 02 October 2011
Non only on cash transaction of Rs.50.000, but also the cover of PAN has been gradually extended by the Income Tax Department on almost all types of transactions. From opening bank accounts, demat accounts, and property transactions, the mandatory use of PAN has been gradually increased to cover more transactions. The transactions that already required PAN include sale or purchase of property valued at5 lakhs or more, sale or purchase of motor vehicles other than two-wheelers and bank deposits exceeding 50,000. Telephone connection applications, opening of bank accounts, restaurant bills of over 25,000 and mutual fund investments of 50,000 and above also needed PAN to be quoted.
You also have to present your PAN card for a purchase of jewellery worth 5 lakhs or more from this month. Besides jewellery, furnishing PAN would be mandatory for some other transactions also. These include issue of a debit card by a bank. A payment ofRs. 50,000 or more in a year towards life insurance premium will also require PAN. The move is expected to help the tax department track high value transactions .
NOW WITH EFFECT FROM 1st April 2010, all the financial transaction without PAN will attract income tax. Income tax department also made mandatory to mention PAN to both the deductor and deductee of TDS.
Accordingly, a new section 206AA has been introduced in the financial year 2010-11. According to this new section 206AA tax will be deducted at the rate higher of prescribed rate or 20% in the case of non-submission of the PAN.
In simple terms :
IT IS MANDATORY TO QUOTE PAN in all the following types of cases:
1) application for opening an account with a bank
2) application for installation of a telephone connection (including a cellular telephone)
3) documents pertaining to sale or purchase of a motor vehicle
4) documents pertaining to sale or purchase of immovable property valued at5 lakh or more
5) documents pertaining to deposits exceeding 50,000 in any account with a Post Office Savings Bank
6) documents pertaining to a contract of a value exceeding 10 lakhs for sale or purchase of securities (Shares, Debentures etc.)
7) payment to hotels & restaurants against their bills for an amount exceeding 25,000 at any one time
8) Returns of income
9) Challans for payment of direct taxes
10) All correspondence with Income-Tax Department
HOWEVER, THERE ARE CERTAIN CATEGORIES WHOM SUCH PROVISIONS ARE NOT APPLICABLE, AS PER SEC.139A
The provisions of section 139A shall not apply to following class or classes of persons, namely:-
The persons who have agricultural income and are not in receipt of any other income chargeable to income-tax. Such persons shall instead be required to make a declaration in Form No. 61 in respect of transactions referred to in clauses (a) to (h) of rule 114B of Income Tax Rules.
Non-residents referred to in clause (30) of section 2 of Income tax Act, 1961
A non resident, who enters into any transaction referred to in clauses (a) to (h) of rule 114B, shall have to furnish a copy of his passport.
