Friday , November 25 2016
Home / Business / IT Department amends PAN rules for transactions exceeding specified limits

IT Department amends PAN rules for transactions exceeding specified limits

Pan Card

New Delhi : The government is committed to curbing the circulation of black money and widening of tax base.

To collect information of certain types of transactions from third parties in a non-intrusive manner, the Department of Income Tax has now made it mandatory under Rule 114B of the Income-tax Rules to quote PAN where the transactions exceed a specified limit.

In a media release, the IT Department said that in case of transactions of sale or purchase of goods and service, PAN will be required to be quoted, irrespective of the mode of payment if the transaction exceeds Rs. two lakhs.

It further stated that to ensure a balance between burden of compliance on legitimate transactions and the need to capture information relating to transactions of higher value, the government has amended Rule 114B to enhance the monetary limits of certain transactions which require quoting of PAN.

The department said that the changes made to the rules have been notified through S.O. No. 3545(E) dated December 30, 2015.

It said that these changes will take effect from January 1, 2016.

A notification to this effect is available on the website www.incometaxindia.gov.in. (ANI)