When will the PAN be made compulsory for cash transactions above Rs. 1 Lakh?
The government is planning to introduce a new rule whereby any cash transactions that you do above a minimum limit of Rs.1 Lakhs will require your PAN card before getting approved. The finance minister had announced such a move in his annual budget although there is no deadline as to when the move will finally get implemented. When PAN card will be made mandatory for any cash transactions above Rs. 1 Lakhs, the black money on which taxes have not been paid will be difficult to float in the system thereby ensuring a strong and robust economy.
In case of investments such as Mutual Funds, PAN is mandatory if the amount exceeds Rs. 50,000. In case you are purchasing a car or bike using cash, you need to quote your PAN irrespective of the amount. If you are depositing more than Rs. 50,000 cash in any bank, you need to quote your PAN. Purchase of property using cash that exceeds Rs. 10 lakhs will need your PAN. Even for hotel bills that exceed Rs. 50,000, your PAN is needed. For purchase of gold jewellery as well, you need to quote your PAN if the amount exceeds Rs. 2 lakhs. The limit is Rs. 50,000 for e-wallets.