📌 Key Takeaway: Complete list of transactions where quoting PAN is compulsory under Rule 114B: cash deposits, motor vehicles, mutual funds, credit cards, and property.
The Statutory Mandate of Rule 114B
Under Rule 114B of the Income Tax Rules, 1962, every person entering into specified high-value financial, banking, and property transactions must compulsorily quote their Permanent Account Number (PAN). If an individual does not possess a PAN, they must furnish a declaration in Form 60 under Rule 114D.
Comprehensive List of Specified Transactions under Rule 114B
- Motor Vehicles: Sale or purchase of any four-wheeler or commercial vehicle (excluding two-wheelers).
- Bank Account Opening: Opening any savings or current bank account (except Basic Savings Bank Deposit Accounts).
- Credit & Debit Cards: Application for credit cards or prepaid financial cards.
- Demat Account: Opening a demat account for shares, mutual funds, and securities.
- Cash Deposits in Bank: Cash deposits exceeding ₹50,000 in a single day or aggregating to ₹2.5 Lakhs during specified windows.
- Bank Drafts & Pay Orders: Purchase of DD / Pay Orders in cash exceeding ₹50,000 in a single day.
- Fixed Deposits (FD): Time deposits exceeding ₹50,000 per transaction or ₹5 Lakhs aggregate in a financial year.
- Mutual Funds & Securities: Investment exceeding ₹50,000 in mutual fund units or bonds.
- Immovable Real Estate: Sale or purchase of real estate property valued at ₹10 Lakhs or more (or stamp duty value ₹10L+).
- Hotel & Restaurant Bills: Cash payments exceeding ₹50,000 per bill.
Consequences of Non-Quoting or Wrong PAN Quoting
Quoting a false or fraudulent PAN attracts a statutory penalty of ₹10,000 under Section 272B for every default.