PAN must for hotel bills, foreign airfare of over Rs 50,000

Mangalore Today News Network

Dec 16, 2015: With effect from January 1, the government will make it mandatory to quote Permanent Account Number (PAN) for cash payment for buying tickets for foreign travel as well as paying hotel bills of more than Rs 50,000 from the earlier limit of Rs 25,000.

In a move aimed at curbing black money, the government has enhanced monetary limits of many transactions which require quoting of PAN. Furnishing of PAN has been made mandatory for cash payments of over Rs 50,000 for cash cards or prepaid instruments as well as for acquiring shares of unlisted firms for over Rs 1 lakh per transaction.

PAN will now be mandatory to open all bank accounts including co-operative banks. PAN will, however, not be required for opening bank accounts under Jan Dhan Yojana. PAN will be mandatory for sale or purchase of immovable property over Rs 10 lakh, from the earlier limit of Rs 5 lakh. Quoting of PAN will also be needed for jewellery purchases worth over Rs 2 lakh per transaction, revenue secretary Hasmukh Adhia said on Tuesday.

The government, however, discontinued the requirement of quoting PAN for investors depositing in Post Office Savings deposits. The current requirement specified quoting of PAN for post office deposits over Rs 50,000.

Adhia said quoting of PAN for transactions such as sale or purchase of securities exceeding value of Rs 1 lakh or application of credit card to banking company or making cash deposit of more than Rs 50,000 has not been changed. “The government is committed to curbing the circulation of black money and widening of tax base. To collect information on certain types of transactions from third parties in a non-intrusive manner, the income tax rules require quoting of PAN where the transactions exceed a specified limit,” Adhia said.

The Supreme Court-appointed SIT on black money had recommended quoting of PAN should be mandatory for all sales and purchase of goods and services worth over Rs 1 lakh. Finance minister Arun Jaitley had included this provision in his Budget speech.

“The government has since received numerous representations from various quarters regarding the burden of compliance this proposal would entail. It has been decided that quoting of PAN will be required for transactions exceeding Rs 2 lakh regardless of the mode of payment,” Adhia said.

The finance ministry has also changed the monetary limits for filing of appeals by the Central Board of Direct Taxes and Central Board of Excise and Customs. The monetary limit for filing appeals by revenue department in tax cases has been raised to Rs 10 lakh in an appellate tribunal and Rs 20 lakh in high courts. The ministry has also decided to withdraw appeals filed by I-T department in Income Tax Appellate Tribunal (ITAT) and high courts for cases involving tax effect less than the new monetary limits.

“The monetary limits for filing of appeals by the department before the ITAT and the High Courts have been revised to tax effect of Rs 10 lakhs and Rs 20 lakhs, respectively, from the present limits of tax effect of Rs 4 lakhs and Rs 10 lakhs,” Adhia said.

The revised limits have been made applicable retrospectively to pending appeals also, he said, adding directions have been issued that pending appeals which are below the revised monetary limits may be withdrawn or not pressed. He, however, added the cases involving substantive issue of law would be pursued irrespective of the monetary limit.

The government has also decided to set up a collegium of two chief commissioners or one principal commissioner and one chief commissioner to decide on withdrawal of appeals filed by the revenue department.

‘Direct tax mop up to fall short by Rs 40K cr’

New Delhi: Revenue secretary Hasmukh Adhia Adhia on Tuesday said the government is likely to face a shortfall of Rs 30,000-40,000 crore in direct tax collection in this financial year, with collections in Apr-Nov being 46.26 per cent of the total Budgeted target.

During April-November direct taxes, including income tax and corporate taxes, rose 12.63 per cent to Rs 3.69 lakh crore.