Permanent Account Number (PAN) is required to mandatorily furnish in certain cases –
- Sale or purchase of any immovable property valued at five lakh rupees or more.
- Sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle.
- A time deposit, exceeding fifty thousand rupees, with a banking company
- A deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank.
- A contract of a value exceeding one lakh rupees for sale or purchase of securities.
- Payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time.
- Payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day.
- Deposit in cash aggregating fifty thousand rupees or more with a bank during any one day.
- Payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time.
- Payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer.
- Payment to a dealer of an amount of five lakh rupees or more at any one time or against a bill for an amount of five lakh or more for purchase of bullion or jewellery.
If any person who does not have a PAN and who enters into any transaction specified in this rule, shall make a declaration in Form No. 60
There are certain cases in which PAN is not mandatory but restricts the person from many benefits
- Form 15G/15H cannot be filed.
- All persons which are required to deduct TDS from your income are required to deduct TDS at the rate of 20%.