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, it is mandatory under Rule 114B of the Income-tax Rules to quote PAN where the transactions exceed a specified limit. In case of transactions of sale or purchase of goods and services, PAN will be required to be quoted, irrespective of the mode of payment if the transaction exceeds Rs. two lakhs.

To bring 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 changes made to the Rules have been notified through S.O. No. 3545(E) dated 30th December, 2015. These changes will take effect from 1st January, 2016.

The Notification is available on the website of the Department www.incometaxindia.gov.in.   

PAN quoting requirement for specified high-value transactions amended to raise monetary thresholds, tightening third-party reporting obligations. Amendment increases monetary limits triggering mandatory PAN quotation to improve reporting of higher value transactions while moderating compliance burdens; PAN remains mandatory for sale or purchase of goods and services irrespective of payment mode when transactions exceed the prescribed threshold (previously two lakhs). The amendments were notified by S.O. No. 3545(E) dated 30th December, 2015 and take effect from 1st January, 2016.