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  India   PAN limit for unlisted firm shares hiked to Rs 1 lakh

PAN limit for unlisted firm shares hiked to Rs 1 lakh

| PAWAN BALI
Published : Dec 16, 2015, 4:59 am IST
Updated : Dec 16, 2015, 4:59 am IST

For purchase or sale of shares of an unlisted company the monetary limit for furnishing PAN has been hiked to Rs 1 lakh from Rs 50,000.

For purchase or sale of shares of an unlisted company the monetary limit for furnishing PAN has been hiked to Rs 1 lakh from Rs 50,000.

In keeping with the government’s thrust on financial inclusion, opening of a no-frills bank account such as a Jan Dhan Account will not require PAN. Other than that, the requirement of PAN will apply to opening of all bank accounts including in cooperative banks.

The government has discontinued the quoting of PAN for installation of telephone connections. In a relief to small investors, the requirement of furnishing PAN for making post office deposit of over Rs 50,000 has been dispensed with.

Revenue secretary Hasmukh Adhia said for the purchase of jewellery or bullion, a major source of black money, the quoting of PAN would be required if the sum involved Rs 2 lakhs per transaction or more. Currently, it is required for transaction of Rs 5 lakhs and above. The Rs 2-lakh limit for disclosure of PAN card is an “interim measure” and the ultimate goal is to lower it to Rs 1 lakh, Mr Adhia added. PAN will also be mandatory for cash payments of more than Rs 50,000 for cash cards or prepaid instruments.

All other regulations for quoting of PAN like making cash deposit of more than Rs 50,000 or purchase of bank draft/pay orders/bankers cheque of equal denomination on a single day, payment of life insurance premium of Rs 50,000 in a year will continue as warlier. There is also no change in the provision to furnish PAN while applying for a credit card. Credit card applications to cooperative banks will also now require furnishing of PAN details.

Location: India, Delhi, New Delhi