New PAN regime comes into effect from today

New PAN regime comes into effect from today

New PAN regime comes into effect  from today

Eyeing to curb black money and widen the tax base, the government has effected changes in rules related to the use of PAN from Friday.

Under this, quoting the PAN will be mandatory for cash payment to settle hotel bills or buying foreign travel tickets of and above Rs 50,000.

For non-luxury transactions, too, quoting PAN will be required for payment of  above Rs 2 lakh in cash or through card. Purchase of jewellery above Rs 2 lakh or immovable property above Rs 10 lakh will also require the same.

Besides, opening of bank accounts other than under the Pradhan Mantri Jan-Dhan Yojana or term deposits with banks exceeding Rs 50,000 at one go will require the PAN. If an individual deposits Rs 5 lakh in a bank, post-office or non-banking financial institution in a year, he or she can to do it only with help of PAN. Twenty types of transactions have been listed by the government which will be regulated under the new PAN regime in the new year.

Those who do not have PAN number are required to fill a one-page form with details of valid proofs of identity and address like Aadhaar and Voter ID for all such transactions.

The move is in line with the government’s aim to curb black money in circulation. The government also aims to widen the tax base by obtaining more information about tax-payers through these measures.

Any false declaration by an individual not possessing the PAN card can earn him up to a seven-year jail term and a hefty fine under income-tax regulations.

The PAN is a 10-digit alphanumeric number issued in the form of a laminated card by the IT department to any person, firm or entity.

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