PAN made mandatory for some bank transactions

The Income Tax department on Thursday made the Permanent Account Number (PAN) mandatory for a string of bank transactions, including cash deposits of Rs 2.5 lakh or more, till December 30.

In a notification, the department has made it mandatory that PAN be mentioned for the following bank transactions under Rule 114B of the Income Tax Rules, 1962:

- Cash deposit in any bank above Rs 50,000 during any one day.

- Cash deposits of Rs 250,000 or more up to December 30, 2016, as notified by the Central Board of Direct Taxes on November 15.

- Time deposit in any scheduled or cooperative bank or a post office.

- Purchase of demand drafts or pay orders or banker's cheques in cash for above Rs 50,000 on any single day.

- Opening an account other than a time-deposit or a Jan Dhan/basic bank deposit account.

"The department has issued 25 crore PANs till date. Persons requiring a PAN to comply with the rule should apply to the NSDL (National Securities Depository Ltd) in a prescribed format with documentary proof," said the notification.

Instructions to apply for a PAN are available on the department's website - www.incometaxindia.gov.in with a link to NSDL website.

--IANS

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