According to rule 114B the transactions for which quoting PAN is mandatory are following:
- Cash payment of an amount exceeding Rs 50,000 to a hotel or restaurant against a bill at any one time.
- If individual is making an application for issue of a credit card or debit card.
- Sale or purchase of motor vehicle or vehicle other than two wheeled vehicles.
- Opening of a demat account.
- Opening of an account with a banking company or a co- operative bank other than time deposit and basic saving bank deposit account.
- Making any cash payment of amount exceeding Rs 50,000 in connection with travel to any foreign country or purchasing of any foreign currency at any point of time.
- Making any cash payment of amount exceeding Rs 50,000 to a Mutual Fund for purchase of its units.
- Making any payment of amount exceeding Rs 50,000 to the Reserve Bank of India for acquiring bonds issued by it.
- Making any payment of amount exceeding Rs 50,000 to a company or an institution for acquiring bonds and debentures issued by it.
- Making any cash deposit with banking company or a co-operative bank of amount exceeding Rs 50,000 during any one day or cash deposit of aggregating to more than Rs 2,50,000 during the period 09th November, 2016 to 30th December 2016.
- Making any cash payment of amount exceeding Rs 50,000 during any one day for purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank.
- Making a time deposit of amount exceeding Rs 50,000 or aggregating to more than Rs 5,00,000 during a financial year with a banking company/ co-operative bank/ post office/ Nidhi referred to in section 406 of the Companies Act.
- Making an payment of amount aggregating to more than Rs 50000 in a financial year as life insurance premium to an insurer.
- A contract for sale or purchase of securities other than shares of amount exceeding Rs 1 lakh per transaction.
- Remittance of money out of India.
- Transfer of funds from NRE to NRO account.
Transaction Where Rule 114B is not applicable
This rule is not applicable on following class of persons:
- The Central government, the State Governments and the Consular Offices.
- The non- residents referred to in clause (30) of section 2 of the Act.
Penalty for contravention of Rule 114B
If the above rule is contravened then the individual have to face some penalties. The penalties are:
- If a person does any transaction mentioned above without having PAN card then Assessing officer may impose penalty of Rs 10,000.
- If a person who is required to quote his PAN, quotes a false PAN will face a penalty of Rs 10,000.