New Delhi: With the beginning of the New Year, Government is looking forward to curb generation of black money.
On Thursday, the Central Board of Direct Taxes declared Permanent Account Number (PAN) mandatory for cash transactions above Rs 2 lakh from today.
“PAN will be required for transactions above Rs.2 lakh, regardless of the mode of payment,” the Central Board of Direct Taxes (CBDT) said in a statement.
As part of the directives issued by the government for implementation of the regime, any person not having a PAN but undertaking a transaction which requires a mandatory quoting of it, will have to fill up 'Form No. 60'.
The one-page form seeks personal details of the person undertaking the transaction along with a valid proof of identity and address, like Aadhaar and Elector's Photo Identity Card (EPIC) among others.
There are people who may not have a PAN and still make a large transaction for which quoting of PAN is now essential. In such cases, such people have to fill Form 60 and making a false declaration of information in this will make them liable for punishment which could be a maximum of seven years of Rigorous Imprisonment (RI) with fine or a minimum of three months RI with fine under IT laws," a senior tax department official said.