From 1.07.2011 onwards, you will have to furnish your Permanent Account Number (PAN) to;

a)      The insurance company if the amount of life insurance premium paid to them in a year is Rs.50,000 or more

b)      To a dealer of jewellery or bullion if;

i)         Payment of Rs.500,000 or more is made to him

ii)        Payment is made against a bill which is for Rs.500,000 or more.

Other transactions where quoting of PAN is compulsory are;

a)       Sale or purchase of immovable property valued at Rs.50.00 L or more.

b)      Sale or purchase of a motor vehicle or vehicle (excluding a two wheeler)

c)       A fixed deposit with bank exceeding Rs.50,000

d)      A deposit with a post office exceeding Rs.50,000

e)      A contract of Rs.100,000 or more for sale or purchase of securities

f)       Opening a bank account

g)      Making an application for installation of telephone including cell phones

h)      Payment to hotels and restaurants of Rs.25,000 at any one time

i)        Payment in case for purchase of bank drafts/pay orders or bankers cheques if the total amount of these instruments during a day exceeds Rs.50,000

j)        Cash deposit in excess of Rs.50,000 in a  bank in any one day

k)      Payment in cash in connection with foreign travel in excess of Rs.25,000

l)        Application to a ban for issue of a credit card

m)    Payment or Rs.50,000 or more to a mutual fund for purchase of units

n)      Payment of Rs.50,000 or more to a company for acquiring its shares

o)      Payment  of Rs.50,000 or more to a company or institution for acquiring debentures or bonds

p)      Payment of Rs.50,000 or more to Reserve Bank of India for acquiring bonds issued by it

Persons who do not have a PAN and who enter into above transactions have to give a declaration in Form 60 to the persons with whom the transactions are entered into and the declaration so received has to be forwarded to the Commissioner of Income Tax (Central Information Branch) having jurisdiction.

Disclaimer : The information contained in this write up is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. We recommend that professional advice is sought before taking any action on specific issues.