Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment
 
 
Direct Tax »
 Senior IRS officer Rajendra Kumar appointed new CBDT member
 Income tax raids continue on premises of three Chennai businessmen
 Hopeful of meeting direct tax collection target for this financial year: CBDT
 Bengaluru tops in income tax probes after demonetisation
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016

PAN to be must for all high-value spendings, overseas travels and new debit cards to come under lens
June, 04th 2011

All high-value jewellery purchases, debit card requests, overseas travels, and life insurance premiums over Rs 50,000 will soon be tagged, with the Central Board of Direct Taxes making it mandatory to quote permanent account numbers (PAN) in such transactions. The Income-Tax department has amended rules to add these items to the list of financial transactions where disclosure of PAN is compulsory.

The new rules will be notified soon. The move is the latest in a series of measures taken by the department to crack down on black money. "A large amount of cash is used to carry out these transactions and quoting PAN will help in keeping track of any tax evasion," said an incometax official. PAN is a 10-digit alphanumeric identification issued by the IT Department to an individual.

It is mandatory to quote PAN in all tax returns. According to the new rules, anyone paying in cash for jewellery over Rs 5 lakh will have to quote his PAN number at the time of purchase. Those applying for debit cards, paying life insurance premium of more than Rs 50,000, or travelling abroad will also be required to disclose their PAN details. Quoting of PAN will allow the Income-Tax Department to map expenditure by an individual to his income.

This will alert the department in cases where spending is in excess of known sources of income.

Experts, however, are sceptical of the move.

"Providing monetary limits and that too on a per-transaction basis, like in the case of bullion and jewellery, is an exercise in futility as people who want to avoid attention will enter into multiple transactions just below the specified limit," said Amitabh Singh , partner, Ernst & Young .

"There should be a system of real-time, online verification of PAN, just like there is for credit cards, so that the cases of quoting fake PANs is mitigated."

At present, PAN is required in property transactions, sale or purchase of motor vehicles requiring registration other than two-wheelers, time deposits of more than Rs 50,000 with any bank or company, and for opening savings accounts or depositing more than Rs 50,000 with post offices. It is also compulsory to quote PAN in applications for credit cards and while paying hotel and restaurant bills exceeding Rs 25,000 in one go.

Tax deducted at source (TDS) on payments could be as high as 20% if PAN is not quoted. The regular rate of TDS is between 2% and 10%.

The Income-Tax Department issues PAN in partnership with UTI Technology Services Ltd and National Securities Depository Ltd. The department has issued 100 million permanent account numbers till date. The annual tax filings, however, are only about 33 million because of exemptions and under-reporting of income.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions