Flash your PAN card for ` 50,000 hotel bill.
PAN must for `50,000 cash payment made for hotel bills, foreign airfare from January 1
QUOTING permanent account number ( PAN) for cash payment made to settle hotels bills or for buying foreign air tickets of ` 50,000 would be mandatory from January 1 as the government has tightened disclosure norms to check generation of domestic black money.
Revenue secretary Hasmukh Adhia said on Tuesday that PAN requirement for non- luxury cash transactions involving sale or purchase will be ` 2 lakh. As part of the new rules, quoting PAN will also be mandatory for purchase of immovable property of ` 10 lakh-- a relief to small home buyers as the government had earlier proposed to furnish PAN for purchase or sale of property worth ` 5 lakh. In a relief to small investors, the requirement of furnishing PAN for making post office deposits of more than ` 50,000 has been scrapped as well.
Announcing the new rules, Adhia said that a distinction has been made in case of hotel and foreign travel bills of ` 50,000 as they are luxury spending.
All other cash transactions would attract the PAN requirement if they are above ` 2 lakh.
Adhia said that purchase of jewellery or bullion-- a major source of black money-- quoting of PAN would be required if the sum involved is ` 2 lakh per transaction. Currently, it is required for transactions of ` 5 lakh and above. The ` 2- lakh limit for disclosure of PAN is an interim measure and ultimate goal is to lower it ` 1 lakh, he added.
PAN would also be mandatory for cash payments of more than ` 50,000 for cash cards or prepaid instruments as well as for acquiring shares of unlisted companies for ` 1 lakh and above.
Quoting PAN will also be mandatory for opening all bank accounts except under the Pradhan Mantri Jan Dhan Yojana.
In order to avoid inconvenience to consumers, the government has decided to discontinue the requirement of PAN for installation of basic landline or cell phone connection.
To bring balance between burden of compliance on legitimate transactions and the need to capture information relating to high value transaction, Adhia said that money limits have now been raised to ` 10 lakh from ` 5 lakh for sale or purchase of immovable property, to ` 50,000 from ` 25,000 in the case of hotel or restaurant bills paid at any one time, and to ` 1 lakh from ` 50,000 for purchase or sale of shares of an unlisted company.
In Lok Sabha, Union finance minister Arun Jaitley said that the government will soon issue a notification making quoting of PAN mandatory for all cash and card transactions beyond ` 2 lakh.
" An issue is being raised with regard to black money ... Very shortly, we will be placing the notification that if you deal in cash of more than ` 2 lakh, PAN would be necessary," Jaitley said during a debate in the Lok Sabha.
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