Income Tax Department lists transactions where PAN will be mandatory

The Income Tax Department, on Thursday, directed citizens to quote their Permanent Account Number (PAN) for a prescribed list of transactions. This came in after the Central Board of Direct Taxes (CBDT) on Tuesday notified that quoting PAN will be mandatory for cash deposits aggregating to Rs 2,50,000 or more between November 9 and December 30, 2015. 

CBDT made this move in the back drop of Prime Minister Narendra Modi's announcement of decomposing Rs 500 and Rs 1,000 notes as legal tender. The Centre set December 30 as the deadline to deposit or exchange old notes which is causing people to throng outside ATMs and banks for hours. 

The Department published a circular, on Press Information Bureau, which listed various transactions revealing one's PAN information will be mandatory.

This list falls under Rule 114B of the Income Tax Rules and will entail the following transactions:

- Deposit with a banking company or a cooperative bank in cash exceeding Rs 50,000 during any one day.

- Purchase of bank drafts or pay orders or banker's cheques from a banking company or a co-operative bank in cash for an amount exceeding Rs 50,000 rupees during any one day. 

- A time deposit with a banking company or a co-operative bank or a Post Office. 

- Opening an account (other than a time-deposit referred to above or a Jan dhan / Basic Bank Deposit Account) with a banking company or a co-operative bank.