Government makes PAN mandatory for Rs 50000 hotel bills in cash, foreign travels – In an effort to check generation of domestic black money, the government has tightened disclosure norms and made furnishing PAN number compulsory from 1 January for cash payment made to settle hotels bills or for buying foreign travel tickets of Rs 50,000.
The PAN requirement limit for non-luxury cash transactions will be Rs 2 lakh. However, in a relief to small investors, the government has dispensed the requirement of furnishing PAN for making post office deposit of over Rs 50,000. PAN will also be mandatory on acquisition of immovable property of Rs 10 lakh.
Presenting the new norms, Revenue Secretary Hasmukh Adhia said purchasing of jewellery or bullion, a major source of blackmoney, furnishing PAN would be required if the sum involved is Rs 2 lakh per transaction.
PAN would also be compulsory for cash payments of more than Rs 50,000 for cash cards or prepaid instruments and for acquiring shares of unlisted companies for Rs 1 lakh and above. It has also been made compulsory for opening all bank accounts except Pradhan Mantri Jan Dhan Yojana accounts, he said.
Adhia said a distinction has been made for hotel and foreign travel bills of Rs 50,000 as they are luxury spending.
All other cash transactions would require the quoting of PAN if they are above Rs 2 lakh.