Description:
As per the amendments in the income tax rules, coming into effect from July 1, quoting PAN (Permanent Account Number) will be mandatory for any payment of Rs five lakh or more for purchase of bullion or jewellery High-value purchase of jewellery, among valuables, have often been feared to be a much favoured route for circulation of black money and quoting of PAN would help the tax authorities in tracking such transactions. Recently, RBI had also asked the banks to consider the jewellers and bullion dealers as high-risk customers and to keep an enhanced vigil on their transactions. Besides jewellery purchase of Rs. Five lakh and above, furnishing of PAN would be mandatory for some other transactions also with effect from tomorrow. These include issue of a debit card by any bank, as against the current practice of the PAN being asked for issuing credit cards only. The payment of Rs. 50,000 or more in a year for life insurance premium would also require PAN from tomorrow.
Source:
1. www.tpcc.in
2.The Tax Referencer .Volume120. Issue No.2, 11 July 2011 Page No.16.
3. www.economictimes.com, dt, 30-6-2011.
Our Comment:
The transactions of Rs. 5 lakhs and above have to be quoted with PAN numbers of the persons. This is one more addition for more transparency.
