« Top Headlines » Open DEMAT Account in 24 hrs  BackBack Income Tax Act amendment on cards on tax treatment of MSME dues  ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing. Check details here  Income tax slabs FY 2024-25: Experts share these 8 benefits for taxpayers in new income tax regime  How To File ITR Online - Step by Step Guide to Efile Income Tax Return, FY 2023-24 (AY 2024-25)  Old or new tax regime for TDS on salary? This post-election 2024 event will impact your tax planning  What Are 5 Heads Of Income Tax?  Income Tax Dept releases interim action plan for FY25 on tax collection, refund approvals   Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Income Tax Return: 5 lesser-known tax-saving tips from Section 80  Why you need not rush to file your ITR immediately  Income tax returns: ITR-1, ITR-2, ITR-4 forms for FY 2023-24 available for e-filing «  New rules to administer I-T welfare fund... Crorepati brokers face I-T scrutiny... » PAN to be must for all bank transactions August, 10th 2007 Another step to curb black money transactions.   In another step to keep closer tabs on financial transactions and curb black money transactions, the government is planning to make quoting the permanent account number (PAN) mandatory for all transactions carried out by customers with their banks and insurance companies.   Currently, quoting the PAN is not mandatory for opening a bank account or buying an insurance policy. Cash deposits of below Rs 50,000 at banks do not require the PAN to be quoted either.   This threshold limit will also be done away with once the government implements the new measures. In addition, existing bank account-holders will need to quote PANs.   The notification to make PAN mandatory for all bank and insurance customers will come before December 31 this year, said a finance ministry official, requesting anonymity. India has about 500 million bank accounts and roughly 54 million PANs have been issued.   As recently as July 2 this year, the government made PAN disclosure mandatory for all security market participants, including mutual fund investors, of any size. Quoting this alpha-numeric number is already mandatory for a host of transactions, including on return of income and all correspondence with any income tax authority.   It is also compulsory to quote PAN in all documents pertaining to financial transactions, including sale and purchase of immovable property (Rs 5 lakh and above) or payments in cash of amounts exceeding Rs 25,000 to hotels and restaurants.   Likewise, PAN has to be mentioned for making a time deposit exceeding Rs 50,000 with a bank or post office. Anyone who pays an insurance premium of Rs 50,000 needs to quote the PAN.   The new measures will also remove any bias people may have towards a financial product by making PAN mandatory for nearly all major financial transactions.   Even as the scope of PAN requirement is being extended, the Association of Mutual Funds in India has been lobbying the government to scrap the PAN requirement imposed on mutual fund transactions, saying the industry is suffering as a result.   Where PAN is mandatory   Sale or purchase of immovable property valued at Rs 5 lakh or more Sale and puchase of vehicles excluding two wheelers Fixed deposits, post office savings of Rs 50,000 Bank drafts of Rs 50,000 All security market participants Income tax returns Challans for payment of direct taxes All correspondence with the income tax department   Where PAN is mandatory, but not strictly implemented Application for opening a bank account Installation of a telephone connection (including a cellular telephone) Acquisition of credit cards Payment to hotels & restaurants against bills exceeding Rs 25,000