One of the most important documents that every individual in India will need to possess is a PAN Card.
This PAN or Permanent Account Number is issued to citizens by the Income Tax Department of India under the supervision of the Central Board of Direct Taxes. This number is a 10-digit alphanumeric identity allotted to a taxpayer and also serves as proof of identity.
A PAN number keeps a record of all transactions of the individual under one database. The government has also made it mandatory for the PAN number to be quoted in transactions that are higher than a certain amount. Through a PAN number, the government can keep a track of every individual’s transactions and financial behavior.
In order to curb the use of black money and monetary fraud, the government has put in place a number of measures. There is a limit imposed on transactions that are undertaken without quoting a PAN number. For the purchase and sale of immovable property, the monetary limit is ₹10,00,00, and for restaurant and hotel bills, the limit is ₹50,000. Beyond this amount, the PAN number of the individual must be quoted. Also, in case individuals wish to deal with cash transactions of over ₹2,00,00. False or failure to declare these details could result in imprisonment and hefty fines for the said individual.
This rule deals with transactions which require individuals to quote their PAN number in all documents for clause (c) of sub-section (5) of section 139A. According to this rule, every individual will have to quote his/her permanent account number in all documents that deal with transactions Purchase or sale of a motor vehicle or vehicle other than vehicles that are two wheeled, Opening account other than a fixed-deposit and Basic Savings Bank Deposit Account with a co-operative bank or banking company etc.
Know more the 114B rule deals with transactions here: Rule 114B
1.The provisions of these rules are as follows
2.who , regarding a transaction specified in Rule 114B has received a document shall ensure after verification that PAN or permanent account number has been correctly and duly mentioned or as the case may be, a declaration in Form 60 that has been duly furnished with all particulars.
3. Any individual, being a person raising bills referred to at Sl.no.5 or Sl.no.6 or Sl.no.8 of Rule 114B, who, in relation to a transaction that has been specified in the said serial numbers, has issued a document will ensure post verification that, permanent account number has been provided correctly and the same should be mentioned in such document or as the case may be, a declaration in Form 60 has been duly provided with all particulars.
This rule refers to the manner and time in which individuals referred to in Rule 114C will have to furnish a statement that contain particulars of Form 60.
Financial transaction statement that needs to be furnished under subsection (1) of section 285BA of the Act shall be furnished with respect to a financial year in Form No.61A and it shall be verified in the manner that has been indicated herein. Financial Transaction such as Cash payment made for the purchase of pay orders, bank drafts, and banker's cheque of an amount that aggregates to Rs.10 lakh or more in one financial year. To know more about the rule check here: Rule 114E
1.In case of a reporting individual, being a Postmaster General or an Inspector General or a Registrar referred to in sub-rule (2), the said return in Form 61A may be provided in a computer readable media, being a DVD or Compact Disc, along with necessary verification in Form-V on paper.
2.Digital signature in the above rule means a digital signature that has been issued by a Certifying Authority authorised to provide such certificates by the Controller of Certifying Authorities.
3.Statement of financial transactions referred to in sub-rule (1) shall be given on or prior to May 31, post financial year in which transaction was recorded or registered. As long as the statement of financial transaction in respect of transactions provided in Number 12 of Table under sub-rule (2), shall be given on or prior of January 31, 2017.
4.Every reporting individual mentioned in column (3) of Table under sub-rule (2) will have to communicate to the Principal Director General of Income-tax (Systems) the name, designation, telephone number and address of the Designated Director and Principal Officer and avail a registration number.
5.It will be the duty of every individual specified in column (3) of Table under sub-rule (2), its Designated Director, Principal Officer and employees to observe the process and manner of maintaining information as specified by its regulator and ensure that compliance with all regulation that have been imposed under section 285BA of the Act and rules 114B to 114D and this rule, is maintained.
6.The Statement of financial transaction that has been referred to in sub-rule (1) shall be signed, verified and furnished by the Designated Director specified in sub-rule (6).
7.Where a reporting individual is a non-resident, the statement may be verified, signed and furnished by an individual who holds a valid power of attorney from such a Designated Director.
8.Rules 114B to 114E are rules that go into specifics of all transactions that require a PAN Card. These rules talk about all the nitty-gritties that individuals will have to be aware of, prior to participating in transactions. With demonetisation and tougher financial rules coming into play, individuals are expected to use money judiciously and without going against the law.
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.