1. New PAN quoting and filing requirements under the India Income Tax Act take effect from January 1, 2016, covering 18 types of transactions. 2. PAN must now be quoted for transactions over certain value thresholds, such as buying/selling vehicles or property, hotel bills over Rs. 50,000, and time deposits over Rs. 50,000. 3. Form 60 must be filed if no PAN exists for a transaction, providing identity documents. Those required to audit accounts must file Form 61 with transaction details.

1. NEW PAN QUOTING and FILING REQUIREMENTS UNDER India Income Tax
from 1st
January,2016
PAN Quoting by every person W.E.F. 1-1-16 is mandatory in all documents pertaining to the
transactions specified below {Sec 139A(5)(c )} . Total 18 types of transactions covered. (Notification
dt.30-12-2015) (Rule-114B)
S.no. Nature of Transaction Value of transaction in Rs.
1. Sale or purchase of a motor vehicle or vehicle, as defined
in clause (28) of section 2 of the Motor Vehicles Act,
1988 (59 of 1988) which requires registration by a
registering authority under Chapter IV of that Act, other
than two wheeled vehicles.
All such transaction
2. Opening an account [other than a time-deposit referred to
at Sl. No.12 and a Basic Savings Bank Deposit Account]
with a banking company or a cooperative bank
All such transaction
3. Making an application to any banking company or a co-
operative bank for issue of a credit or debit card.
All such transaction
4. Opening of a demat account All such transactions
5. Payment to a hotel or restaurant against a bill or bills at
any one time.
Payment in Cash exceeding
Rs.50000/= (Earlier
Rs.25000/=)
6. Payment in connection with travel to any foreign country
or payment for purchase of any foreign currency at any
one time.
Payment in Cash exceeding
Rs.50000/= (Earlier
Rs.25000/=)
7. Payment to a Mutual Fund for purchase of its units Amount exceeding Rs.50000/=
8. Payment to a company or an institution for acquiring
debentures or bonds issued by it.
Amount exceeding Rs.50000/=
9. Payment to the Reserve Bank of India for acquiring bonds
issued by it
Amount exceeding Rs.50000/=
10. Cash Deposit with a banking company or a co-operative
bank during any one day
Deposits in cash exceeding
Rs.50000/= during any one day
11. Purchase of bank drafts / pay orders/ banker’s cheques
from a banking company or a co-operative bank during
any one day.
Payment in cash exceeding
Rs.50000/= during any one day
12. A time deposit with, -
(i) a banking company or a co-operative bank
(ii) a Post Office;
(iii) a Nidhi Co.
(iv) a non-banking financial company
Amount exceeding Rs.50000/=
each transaction or aggregating
to more than Rs.5 Lakhs during
a financial year.
13. Payment for one or more pre-paid payment instruments
like smart cards/ online wallets etc to a banking company
or a co-operative bank or to any other company or
institution.
Payment in cash/ bank draft
/pay order/ banker’s cheque of
an amount aggregating to more
than Rs.50000/= in a financial
year.
14. Payment of life insurance premium Amount aggregating to more
than Rs.50000/= in a financial
year.
15. A contract for sale or purchase of securities (other than
shares)
Amount exceeding Rs.1 Lakh
per transaction.
16. Sale or purchase, by any person, of shares of a company
not listed in a recognised stock exchange.
Amount exceeding Rs.1 lakh
per transaction.
17. Sale or purchase of any immovable property. Amount of transaction

2. exceeding Rs.10 lakhs or
valued by stamp valuation
authority referred to in section
50C of the Act at an amount
exceeding Rs.10 lakhs ( Earlier
Rs.5 lakhs)
18. Sale or purchase, by any person, of goods / services of
any nature other than those specified at Sl. No. 1 to 17 of
this Table, if any.
Amount exceeding Rs.2 lakhs
per transaction: (earlier Rs.5
Lakhs for bullion or jewellery
dealers only)
PAN Quoting not required by following:
1. Central Government/ State Government / Consular offices
2. NON-Residents except transactions listed at S.no.3, 5, 6, 9,11,13,18 of the Table given above.
Other requirements:
1. In case of Minor- PAN of father/mother/guardian to be quoted
2. In case person do not have PAN- he shall make declaration in Form No.60.
3. Salient features of Form 60
 Can be filed by all persons other than Company and Firm
 If PAN applied-mention acknowledgement number
 Documentary proof of identity and address to be attached. A complete list is provided.
 In case of minor proofs of parent/ guardian required.
 In case of HUF any document in the name of Karta of HUF is required
 In case of joint transaction-total number of persons to be mentioned
 Amount and mode of transaction to be mentioned
 A person making false declaration in Form 60 shall be liable to prosecution u/s 277 and
fine.
4. It is duty of the concerned person i.e.the person raising bill/ post master/ manager etc. to verify
the PAN and correctly mention in all the documents/ invoice and in case PAN is not available-
Form 60 has been duly furnished with complete particulars and supporting prescribed documents.
Filing of Form-60
 Form no. 60 are not required to be filed however a statement in Form 61 containing
particulars of Form 60 is to be filed in respect of declaration received up to 30th
September by 31st
October and declaration received up to 31st
March by 30th
April
 The verifier is required to file the Form 61 and for item no.5,6 and 18 of the table
,persons who are required to get his accounts audited u/s 44AB are required to file.
 Form 60 to be retained for a period of 6 years from the end of the F.Y. in which
transaction undertaken.
 First declaration to be filed for Form 60 received for the period 1st January, 2016 to 31st
March, 2016 by 30th
April, 2016.
Compiled by:
Ca.Sanjay Gupta
Ph: 9311025900
Email: sanjay@sanjayramshanker.com