PAN limits raised for a series of transactions

To curb circulation of black money, the government on Tuesday made it mandatory to produce PAN for buying goods and services over Rs 2 lakhs regardless of the mode of payment from January 1, 2016. However, it also hiked the monetary limits for transactions that now need quoting of PAN, so people are not burdened.

For purchase of immovable property, the limit for PAN has been raised to Rs 10 lakhs from the existing Rs 5 lakhs. In a new provision, properties valued by the stamp valuation authority over Rs 10 lakhs will also need PAN.

In hotel or restaurant bill payments, PAN will now be needed for amounts of Rs 50,000, up from Rs 25,000. Earlier, cash payments over Rs 25,000 for foreign travel (fare, payment to travel agent, purchase of forex) required PAN. This has been raised to Rs 50,000. For hotel bills and foreign travel, the government didn’t raise the limit to Rs 2 lakhs as it was seen as luxury spending.