PAN Card for Transactions

Commencing from Jan 01, 2016, the PAN Card has to be furnished during the following transactions:

1. Immovable Property - Purchase and sales of immovable property exceeding ₹10 lakh requires a PAN Card. The previous limit was ₹5 lakh, which has now been increased to ₹10 lakh.. Any of the properties that is valued by Stamp Valuation authority and exceeds ₹10 lakh needs PAN Card during transaction.
2. Motor Vehicle - When purchasing a four-wheeler, the individual will have to produce a PAN Card. A person selling his four-wheeler is also required to show his PAN for the transaction. However, PAN is not needed for the sale or purchase of two-wheelers.
3. Fixed Deposit - Fixed deposits with any bank that are more than ₹50,000 or ₹5 lakh in a year are supposed to be backed with a PAN Card. This rule also applies to term deposits with non-banking financial corporations (NBFCs) and Post Offices.
4. Opening an Account - When opening an account with any of the banks, be it nationalized or co-operative, an individual has to produce his PAN as one of the documents for identification. Only accounts in Pradhan Mantri Dhan Yojana are exempted from producing the PAN.
5. Life Insurance Premiums - Life insurance premiums may vary on the plan and premium amount, as preferred by the policyholder. Premiums may be as low as ₹100 or high as ₹1 lakh, depending on the insurance provider. However, in any year if the premium tends to exceed ₹50,000, as per the new rule the policyholder will have to mention details of his PAN Card.
6. Cash Card - Payments made using cash cards also require PAN details. While making cash transactions through any prepaid payment instruments such as gift cards,social benefit cards or remittance cards, exceeding  ₹50,000 in a year PAN Card number should be mentioned.
7. Foreign Travel - Quoting PAN Card is mandatory for cash payments in connection with foreign travel or purchasing foreign currency of value more than ₹50,000.
8. Hotel Bill - One time bill payment of ₹50,000 or more in cash, in any restaurant or hotel requires the payer to quote his PAN details.
9. Cash Purchase of Bank Drafts - You need to mention PAN Card if you are doing cash purchase of bank drafts/ pay orders or banker's cheques exceeding ₹50,000 on any day.
10. Cash Deposit - Quoting PAN is essential while making transaction or cash deposits worth ₹50,000 or more in a single day in any bank account.
11. Credit Card - It is mandatory to quote PAN Card number while applying for credit card at any bank or financial institution.
12. Purchase of bullion or jewelery - With effect from January 01, 2016, the finance ministry announced that purchase of gold jewelery or bullion worth₹2 lakh or more in cash or through card, furnishing PAN is a must.
13. Mutual fund or Bond Purchase - PAN has to be mentioned if bonds or mutual funds exceed the purchase value of ₹50,000.
14. Company Shares  - Opening DEMAT accounts, used for purchasing shares in a company, in banks has PAN as one of the mandatory documents. Hence an individual who wishes to purchase stocks in an unlisted company or open a DEMAT account of more than ₹1 lakh should furnish his permanent account number.

Quoting the PAN Card number is mandatory under Rule 114B of the Income Tax Department . These changes have been introduced by the Government in order to reduce black money movement and increase tax payer base in the country.