In an attempt to combat black money,the Centre has made it compulsory to submit PAN card number for purchase of jewellery or bullion exceeding Rs 5 lakh.The rule of quoting PAN card will also apply to those who avail debit cards from banks.
The Central Board of Direct Taxes (CBDT) and the Income Tax Department have issued a notification amending the rules.
This new amendment will come into effect from July 1,2011.The CBDT and IT department has already sent a communication to all jewellery dealers,bullion traders,nationalised and private banks which are distributing debit cards.
CBDT has now incorporated four new transactions under Rule 114B of the Income Tax Act which will require PAN number for these transactions.The rule also stated that the PAN card number is necessary for use of debit card,insurance payments exceeding Rs 50,000 in a year,buying jewellery or bullion exceeding Rs 5 lakh at one go.
As per the old act PAN number was compulsory for getting a credit card.The new amended provision under rule 114B (ii) was inserted for issue of a credit or debit card after quoting PAN number.
At present any withdrawal of more than Rs 50,000 in a single purchase or issue of cheque for Rs 50,000,one had to submit PAN Card.Now payment of Rs 50,000 or more in a year as life insurance premium will also require PAN Card number quoted during the transaction.
PAN card number is also compulsory for payment of more than Rs 5 lakh for a one time purchase of bullion or jewellery.
With an intention to bring black money hoarders into the tax net,the Union government thought it fit to exercise powers through this notification.
Some Banks are not insisting for Pan Card for issue of Debit card and just asking to sign F-60 only. I want to ask whether signing of F-60 will do instead of Pan card.
I request the knowers to enlighten on this.