PAN Card Rule: PAN is now mandatory for transactions above ₹2 lakh; non-compliance may lead to penalties.
PAN Card News: Do you often make large purchases worth lakhs in a single go without even checking the bill? If so, this news is for you; familiarize yourself with these new PAN card rules to avoid future regret.
PAN Card News: We all make various small, everyday purchases and conduct online transactions for them. While routine small purchases are fine, there are occasions when we spend lakhs on shopping. Often, amidst the transactions, we lose track of the total value of goods purchased. If you have this habit, you need to curb it now. Here is why.
If you are a shopaholic who ignores the bill total while shopping, it is time to pay attention. Spending more than ₹2 lakh can lead to a hefty penalty. This is enforced strictly, especially if you do not possess a PAN card. In fact, a PAN card is now mandatory for any major transaction amounting to ₹2 lakh or more.
PAN is essential for these activities, not just transactions
A PAN card is not used solely for filing Income Tax Returns (ITR); it is required for various other purposes. Here are the instances where a PAN card is mandatory:
You will need a PAN card if you purchase goods worth more than ₹2 lakh, such as gold, silver, phones, TVs, laptops, refrigerators, etc.
A PAN card is mandatory if you are undertaking travel that costs more than ₹2 lakh.
You must provide a PAN card if you buy or sell property worth more than ₹20 lakh.
A PAN card is mandatory when purchasing a vehicle (car, bike, etc.) or any other item costing between ₹2 lakh and ₹5 lakh or more. You are required to present your PAN card even when purchasing shares worth ₹1 lakh in an unlisted company.
Providing a PAN card is also mandatory when opening a demat account or making other types of investments.
No PAN means a penalty
You may face a penalty if you do not possess a PAN card while undertaking any of these activities. The process for these transactions will not proceed without a PAN card, and providing incorrect information in lieu of a PAN could result in a penalty of approximately ₹10,000. Therefore, if you plan to carry out transactions exceeding ₹2 lakh in the future, ensure you always keep your PAN card with you.
