The Government vide notification S.O. (3545)(E) dated 30.12.2015, has made quoting of Permanent Account Number (PAN) mandatory for all transactions (irrespective of the mode of payment) of sale or purchase of goods or services of any nature exceeding rupees 2 lakh and for other specified transactions with effect from the 1st day of January, 2016. A person not having PAN can, however, undertake such transactions by making a declaration in Form No. 60 as prescribed.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

PAN mandatory for high-value transactions; non-holders may undertake them only by furnishing a Form 60 declaration. Quoting of the Permanent Account Number (PAN) is mandatory for transactions exceeding the prescribed monetary threshold and for specified other transactions, irrespective of payment mode; persons without PAN may undertake such transactions only by submitting a declaration in Form No. 60, creating a compliance obligation to furnish PAN or file the prescribed declaration to complete covered transactions.