Government has made a further push to stop the generation of black money by making PAN quoting mandatory for transactions above Rs 2 lakh. Earlier the budget had suggested this limit at Rs 1 lakh. A higher limit was selected with several business bodies highlighting the ‘inconveniences’ involved.
The new regulations that makes high value transactions accounted and adding to the PAN identity of the individual contain other measures as well. In the case of immovable properties including real estate, the new regulation stipulates that all transactions above Rs 5 lakh should be made with PAN quoting. Earlier the limit was Rs 10 lakh.
The limit for high value expenditure in hotel also increased. Now, hotel or restaurant bills above Rs 25000 should be made with PAN compared to the earlier limit of Rs 50000.
In the case of share trading of unlisted companies, the PAN card binding has reduced from Rs 1 lakh to Rs 50000.
The new regulations also give provisions for those who doesn’t have PAN card. It says that persons who do not hold PAN are required to fill a form at the time of payment, besides submitting any one of the identity proof prescribed by the government. The new regulations will come into effect from January 1, 2016.