Budget Makes Quoting PAN Compulsory for Transactions over Rs.2.5 Lakh
The recently announced Budget has amended the PAN rules for entities, requiring them to quote PAN for any financial transaction above Rs.2.5 lakh. The new rule will come into effect from April 1, 2018.
The PAN number would be akin to a Unique Entity Number, making it mandatory for all entities entering into financial transactions to apply for a PAN card. In addition to this, the Finance Bill has also suggested that directors, trustees, partners or any person acting on behalf of the entity apply to the Assessing Officer for allotment of a PAN card.
8 February 2018
PAN Card not required for jewellery purchase of over Rs. 50,000
At the 22nd GST Council meeting the government has dismissed the need to present the PAN Card while purchasing jewellery of above Rs. 50,000. This has turned to be very enthralling for the buyers. Owing to this, the jewelers need not present buyer’s data to the Financial Intelligence Unit.
It is also a big relief for jewellery dealers as government has kept them out of the Prevention of Money Laundering Act (PMLA). The gem dealers will also benefit from the decision.
16 October 2017
Proposal to make PAN compulsory for all transactions related to gold
As per a proposal by financial regulators, gold transactions from jewellers should require a PAN. This panel was set up after the recommendations put forth by the subcommittee of the Financial Stability and Development Council. This proposal was put forth in order to prevent all gold transactions through the underground market that in turn will result in tax evasion. Currently only those that cost over Rs.2 lakh or over need PAN cards. The panel has also asked for registration of all gold transactions using a depository.
The panel also noted that gold holdings within the country were higher than the standard globally and greater returns can be achieved by households via relocating gold into financial assets.
8 September 2017
Over 11 lakh duplicate and fake PAN cancelled
The government has recently de-activated over 11 lakh PAN (Permanent Account Number) which were found to be invalid for many reasons. In a bid to ensure that only one PAN is allotted to each individual, the government has taken measures to safeguard the tax regulations. Moreover, the PAN allotment’s guiding principle doesn’t allow an individual to have more than one PAN. The individuals who had multiple PAN cards can no longer access more than one PAN. The Assessing Officers have also cancelled many PAN for being fake. Since PAN is used as one the most important key identifiers for taxpayers, the government has taken multiple PAN related initiatives to curb the menace of black money and tax evasion.
3 August 2017
UIDs such as PAN, Aadhaar, Passport compulsory while booking flight ticket
In order to have a hassle-free experience, travellers are going to be asked to provide a digital identification number while booking a ticket. No timeline has been fixed for this implementation of tech-based passenger facilities across all airports, said the Minister of State for Civil Aviation, Jayant Sinha.
Last month, the Aviation Ministry had announced that it would be compulsory for passengers to provide a UID or unique identification such as PAN card, passport or Aadhaar card in order to avail a seamless experience. Three committees have been constituted in order to implement these passenger facilities across all airports in the country.
28 July 2017
Aadhaar and PAN can be linked even now
There were many reports that the last date for linking PAN with Aadhaar is June 30th. This is not true. You can link your Aadhaar with your PAN even now. June 30th was the last date to file income tax returns without Aadhaar.
If you want to file your income tax returns from now (from July 1, 2017), you will need to link your PAN with Aadhaar compulsorily. Also, you will require an Aadhaar card if you want to apply for a new PAN card.
The revenue department has given exemptions to individuals who live in Assam, Meghalaya, and Jammu and Kashmir to quote Aadhaar for getting a new PAN or for filing income tax returns.
14 July 2017
Aadhaar credentials required for PAN card application from July 1st onwards
Over 25 crore PAN cards have been issued by the Income Tax Department and about 115 crore Aadhaar cards have been issued by the Unique Identification Authority of India (UIDAI) so far. The Central Board of Direct Taxes (CBDT) has linked more than 2.16 crore Aadhaar and PAN credentials till now. The government has made Aadhaar-PAN linking mandatory to file Income Tax Returns (ITR). From July 1st onwards, applicants must provide their Aadhaar number to apply for a new PAN card. Those who are not able to link their Aadhaar and PAN credentials by July 1st, can provide their UIDAI enrollment ID or number in the e-ITR forms along with their Permanent Account Number (PAN) to e-file ITR. As per Section 139AA of the Income Tax Act, 1961, PAN cards that haven't been linked with Aadhaar credentials within the due date set by the central government will be deemed invalid.
4 July 2017
PAN No Longer Mandatory for Getting Passports
Foreign minister of India, Sushma Swaraj, announced on Friday that furnishing PAN card will no longer be a mandatory requirement for acquiring a passport. Till date, the passport office required applicants to submit copies of PAN card along with their Aadhar and Voter ID cards, to get their application processed.
However, this rule posed a challenge for applicants from rural areas and from the informal job sector, many of whom don’t have PAN numbers. The foreign minister has declared that such applicants can now submit their ration card in lieu of the PAN with their passport applications.
Swaraj also announced a 10% cut in fees for passport for senior citizens (over 60 year in age) and for children under 8 years. These announcements were made at a ceremony celebrating the 50th anniversary of the Passport Act.
Sushma Swaraj said that the government is simplifying passport rules and taking giant steps to make passport services easily accessible to all the citizens.
Just last year, India issued a total of 13 million passports, the third highest after the United States and China.
30 June 2017
PAN and Aadhaar details mandatory for teacher transfers
The Basic Education Department in Uttar Pradesh has made PAN and Aadhaar details mandatory for the online inter-district transfer of teachers. This directive is a result of surplus teachers in some schools and shortage of teachers in others. The Basic Shiksha Adhikaris of all UP districts have been directed to provide the Aadhaar and PAN Card details of the teachers who are to be transferred. Sanjay Sinha, the Secretary of Basic Shiksha Parishad said that the official website of the National Informatic Centre (NIC) has provisions to feed in the Aadhaar and PAN details of surplus teachers.
27 June 2017
PAN and Aadhaar card mandatory for savings bank accounts
In a bid to curb black money circulation in the economy, the government has made PAN and Aadhaar card mandatory for new customers to open savings bank accounts in India. By December 2017, existing customers will have to submit their PAN and Aadhaar card details to their respective banks or the bank accounts will become inoperable. Going forward, for transactions above Rs.50,000, Aadhaar card details will be required. The changes made to the Prevention of Money Laundering Rules which included the necessity of Aadhaar and PAN cards for transactions effective from 1st June, may also be applicable for smalls accounts like Pradhan Mantri Jan Dhan Yojana.
20 June 2017