1

Mentioning of PAN is compulsory in the following Transactions:

Transactions in relation to which Permanent Account Number (PAN) is to be mentioned in

all documents for the purpose of clause (c) of sub-section (5) of section 139A [Rule 114B]

Section 139A and Rule 114B are as follows

Permanent account number.

139A. (1) Every person,—

(i) if his total income or the total income of any other person in respect of which he is
assessable under this Act during any previous year exceeded the maximum amount
which is not chargeable to income-tax; or

(ii) carrying on any business or profession whose total sales, turnover or gross receipts are
or is likely to exceed five lakh rupees in any previous year; or

(iii) who is required to furnish a return of income under sub-section (4A) of section 139; or

(iv) being an employer, who is required to furnish a return of fringe benefits under section
115WD, or

(v) being a resident, other than an individual, which enters into a financial transaction of
an amount aggregating to two lakh fifty thousand rupees or more in a financial year;
or

(vi) who is the managing director, director, partner, trustee, author, founder, karta, chief
executive officer, principal officer or office bearer of the person referred to in clause
(v) or any person competent to act [on behalf of the person referred to in clause (v);
or

(vii) who intends to enter into such transaction as may be prescribed by the Board in the
interest of revenue,]

and who has not been allotted a permanent account number shall, within such time, as may
be prescribed, apply to the Assessing Officer for the allotment of a permanent account
number.

2
(1A) Notwithstanding anything contained in sub-section (1), the Central Government may,
by notification in the Official Gazette, specify, any class or classes of persons by whom tax is
payable under this Act or any tax or duty is payable under any other law for the time being
in force including importers and exporters whether any tax is payable by them or not and
such persons shall, within such time as mentioned in that notification, apply to the Assessing
Officer for the allotment of a permanent account number.

(1B) Notwithstanding anything contained in sub-section (1), the Central Government may,
for the purpose of collecting any information which may be useful for or relevant to the
purposes of this Act, by notification in the Official Gazette, specify, any class or classes of
persons who shall apply to the Assessing Officer for the allotment of the permanent account
number and such persons shall, within such time as mentioned in that notification, apply to
the Assessing Officer for the allotment of a permanent account number.

(2) The Assessing Officer, having regard to the nature of the transactions as may be
prescribed, may also allot a permanent account number, to any other person (whether any
tax is payable by him or not), in the manner and in accordance with the procedure as may
be prescribed.

(3) Any person, not falling under sub-section (1) or sub-section (2), may apply to the
Assessing Officer for the allotment of a permanent account number and, thereupon, the
Assessing Officer shall allot a permanent account number to such person forthwith.

(4) For the purpose of allotment of permanent account numbers under the new series, the
Board may, by notification in the Official Gazette, specify the date from which the persons
referred to in sub-sections (1) and (2) and other persons who have been allotted permanent
account numbers and residing in a place to be specified in such notification, shall, within
such time as may be specified, apply to the Assessing Officer for the allotment of a
permanent account number under the new series and upon allotment of such permanent
account number to a person, the permanent account number, if any, allotted to him earlier
shall cease to have effect :

Provided that the persons to whom permanent account number under the new series has
already been allotted shall not apply for such number again.

3
(5) Every person shall—

(a) quote such number in all his returns to, or correspondence with, any
income-tax authority;

(b) quote such number in all challans for the payment of any sum due
under this Act;

(c) quote such number in all documents pertaining to such transactions as

may be prescribed by the Board in the interests of the revenue, and
entered into by him:
Provided that the Board may prescribe different dates for different transactions or class of
transactions or for different class of persons:

Provided further that a person shall quote General Index Register Number till such time
Permanent Account Number is allotted to such person;

(d) intimate the Assessing Officer any change in his address or in the name and nature of his
business on the basis of which the permanent account number was allotted to him.

(5A) Every person receiving any sum or income or amount from which tax has been
deducted under the provisions of Chapter XVIIB, shall intimate his permanent account
number to the person responsible for deducting such tax under that Chapter:

Provided further that a person referred to in this sub-section shall intimate the General
Index Register Number till such time permanent account number is allotted to such person.

(5B) Where any sum or income or amount has been paid after deducting tax under Chapter
XVIIB, every person deducting tax under that Chapter shall quote the permanent account
number of the person to whom such sum or income or amount has been paid by him—

(i) in the statement furnished in accordance with the provisions of sub-section (2C)
of section 192;

(ii) in all certificates furnished in accordance with the provisions of section 203;

(iii) in all returns prepared and delivered or caused to be delivered in accordance with the
provisions of section 206 to any income-tax authority;

4
 (iv) in all statements prepared and delivered or caused to be delivered in accordance with
the provisions of sub-section (3) of section 200 :

Provided that the Central Government may, by notification in the Official Gazette, specify
different dates from which the provisions of this sub-section shall apply in respect of any
class or classes of persons:

Provided further that nothing contained in sub-sections (5A) and (5B) shall apply in case of a
person whose total income is not chargeable to income-tax or who is not required to obtain
permanent account number under any provision of this Act if such person furnishes to the
person responsible for deducting tax, a declaration referred to in section 197A in the form
and manner prescribed thereunder to the effect that the tax on his estimated total income
of the previous year in which such income is to be included in computing his total income
will be nil.

(5C) Every buyer or licensee or lessee referred to in section 206C shall intimate his
permanent account number to the person responsible for collecting tax referred to in that
section.

(5D) Every person collecting tax in accordance with the provisions of section 206C shall
quote the permanent account number of every buyer or licensee or lessee referred to in
that section—

(i) in all certificates furnished in accordance with the provisions of sub-section (5)
of section 206C;

(ii) in all returns prepared and delivered or caused to be delivered in accordance with the
provisions of sub-section (5A) or sub-section (5B) of section 206C to an income-tax
authority;

(iii) in all statements prepared and delivered or caused to be delivered in accordance with
the provisions of sub-section (3) of section 206C.

[(5E) Notwithstanding anything contained in this Act, every person who is required to
furnish or intimate or quote his permanent account number under this Act, and who,—

(a) has not been allotted a permanent account number but possesses the Aadhaar
number, may furnish or intimate or quote his Aadhaar number in lieu of the

5
 (b) permanent account number, and such person shall be allotted a permanent account
number in such manner as may be prescribed;

(b) has been allotted a permanent account number, and who has intimated his Aadhaar
number in accordance with provisions of sub-section (2) of section 139AA, may furnish
or intimate or quote his Aadhaar number in lieu of the permanent account number.]

(6) Every person receiving any document relating to a transaction prescribed under clause
(c) of sub-section (5) shall ensure that the Permanent Account Number or the General Index
Register Number [or the Aadhaar number, as the case may be,] has been duly quoted in the
document.

[(6A) Every person entering into such transaction, as may be prescribed, shall quote his
permanent account number or Aadhaar number, as the case may be, in the documents
pertaining to such transactions and also authenticate such permanent account number or
Aadhaar number, in such manner as may be prescribed.

(6B) Every person receiving any document relating to the transactions referred to in sub-
section (6A), shall ensure that permanent account number or Aadhaar number, as the case
may be, has been duly quoted in such document and also ensure that such permanent
account number or Aadhaar number is so authenticated.]

(7) No person who has already been allotted a permanent account number under the new
series shall apply, obtain or possess another permanent account number.

Explanation.—For the removal of doubts, it is hereby declared that any person, who has
been allotted a permanent account number under any clause other than clause (iv) of sub-
section (1), shall not be required to obtain another permanent account number and the
permanent account number already allotted to him shall be deemed to be the permanent
account number in relation to fringe benefit tax.

(8) The Board may make rules providing for—

(a) the form and the manner in which an application may be made for the allotment of a
permanent account number and the particulars which such application shall contain;

(b) the categories of transactions in relation to which Permanent Account Numbers or the
General Index Register Number [or the Aadhaar number, as the case may be,] shall be
quoted by every person in the documents pertaining to such transactions;

6
 (c) the categories of documents pertaining to business or profession in which such
numbers shall be quoted by every person;

(d) class or classes of persons to whom the provisions of this section shall not apply;

(e) the form and the manner in which the person who has not been allotted a Permanent
Account Number or who does not have General Index Register Number shall make his
declaration;

(f) the manner in which the Permanent Account Number or the General Index Register
Number [or the Aadhaar number, as the case may be,] shall be quoted in respect of
the categories of transactions referred to in clause (c);

(g) the time and the manner in which the transactions referred to in clause (c) shall be
intimated to the prescribed authority.

Explanation.—For the purposes of this section,—

[(a) "Aadhaar number" shall have the meaning assigned to it in clause (a) of section 2 of the
Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act,
2016 (18 of 2016);

(aa) "Assessing Officer" includes an income-tax authority who is assigned the duty of
allotting permanent account numbers;

(ab) "authentication" means the process by which the permanent account number or
Aadhaar number alongwith demographic information or biometric information of an
individual is submitted to the income-tax authority or such other authority or agency
as may be prescribed for its verification and such authority or agency verifies the
correctness, or the lack thereof, on the basis of information available with it;]

(b) "permanent account number" means a number which the Assessing Officer may allot
to any person for the purpose of identification and includes a permanent account
number allotted under the new series;

(c) "permanent account number under the new series" means a permanent account
number having ten alphanumeric characters ;

7
 (d) "General Index Register Number" means a number given by an Assessing Officer to an
assessee in the General Index Register maintained by him and containing the
designation and particulars of the ward or circle or range of the Assessing Officer.

[Transactions in relation to which permanent account number is to

be quoted in all documents for the purpose of clause (c) of sub-
section (5) of section 139A.
114B. Every person shall quote his permanent account number in all documents pertaining
to the transactions specified in the Table below, namely:—

TABLE

Sl.No. Nature of transaction Value of transaction

(1) (2) (3)

1. Sale or purchase of a motor vehicle or All such transactions.

vehicle, as defined in clause (28) of
section 2 of the Motor Vehicles Act,
1988 (59 of 1988) which requires
registration by a registering authority
under Chapter IV of that Act, other
than two wheeled vehicles.

2. Opening an account [other than a All such transactions.

time-deposit referred to at Sl. No.12
and a Basic Savings Bank Deposit
Account] with a banking company or
a co-operative bank to which the
Banking Regulation Act, 1949 (10 of
1949), applies (including any bank or
banking institution referred to in

8
 section 51 of that Act).

3. Making an application to any All such transactions.

banking company or a co-operative
bank to which the Banking
Regulation Act, 1949 (10 of 1949),
applies (including any bank or
banking institution referred to in
section 51 of that Act) or to any other
company or institution, for issue of a
credit or debit card.

4. Opening of a demat account with a All such transactions.

depository, participant, custodian of
securities or any other person
registered under sub-section (1A) of
section 12 of the Securities and
Exchange Board of India Act, 1992
(15 of 1992).

5. Payment to a hotel or restaurant Payment in cash of an amount exceeding fifty

against a bill or bills at any one time. thousand rupees.

6. Payment in connection with travel to Payment in cash of an amount exceeding fifty

any foreign country or payment for thousand rupees.
purchase of any foreign currency at
any one time.

7. Payment to a Mutual Fund for Amount exceeding fifty thousand rupees.

purchase of its units.

8. Payment to a company or an Amount exceeding fifty thousand rupees.

institution for acquiring debentures
or bonds issued by it.

9
 9. Payment to the Reserve Bank of Amount exceeding fifty thousand rupees.
India, constituted under section 3 of
the Reserve Bank of India Act, 1934
(2 of 1934) for acquiring bonds issued
by it.

[10. Deposit with,— Cash deposits,—

(i) banking company or a co- (i) exceeding fifty thousand

operative bank to which rupees during any one
the Banking Regulation day; or
Act, 1949 (10 of 1949), (ii) aggregating to more
applies (including any bank than two lakh fifty
or banking institution thousand rupees during
referred to in section 51 of the period
that Act); 09th November, 2016 to
(ii) Post Office. 30th December, 2016.]

11. Purchase of bank drafts or pay orders Payment in cash for an amount exceeding fifty
or banker's cheques from a banking thousand rupees during any one day.
company or a co-operative bank to
which the Banking Regulation Act,
1949 (10 of 1949), applies (including
any bank or banking institution
referred to in section 51 of that Act).

12. A time deposit with,— Amount exceeding fifty thousand rupees or

(i) a banking company or a co- aggregating to more than five lakh rupees

operative bank to which the Banking during a financial year.

Regulation Act, 1949 (10 of 1949),

applies (including any bank or
banking institution referred to in
section 51 of that Act);

10
 (ii) a Post Office;

(iii) a Nidhi referred to in section 406

of the Companies Act, 2013 (18 of
2013); or

(iv) a non-banking financial

company which holds a certificate of
registration under section 45-IA of
the Reserve Bank of India Act, 1934
(2 of 1934), to hold or accept
deposit from public.

13. Payment for one or more pre-paid Payment in cash or by way of a bank draft or
payment instruments, as defined in pay order or banker's cheque of an amount
the policy guidelines for issuance and aggregating to more than fifty thousand
operation of pre-paid payment rupees in a financial year.
instruments issued by Reserve Bank
of India under section 18 of the
Payment and Settlement Systems Act,
2007 (51 of 2007), to a banking
company or a co-operative bank to
which the Banking Regulation Act,
1949 (10 of 1949), applies (including
any bank or banking institution
referred to in section 51 of that Act)
or to any other company or
institution.

14. Payment as life insurance premium to Amount aggregating to more than fifty
an insurer as defined in clause (9) of thousand rupees in a financial year.
section 2 of the Insurance Act, 1938
(4 of 1938).

11
15. A contract for sale or purchase of Amount exceeding one lakh rupees per
securities (other than shares) as transaction.
defined in clause (h) of section 2 of
the Securities Contracts (Regulation)
Act, 1956 (42 of 1956).

16. Sale or purchase, by any person, of Amount exceeding one lakh rupees per
shares of a company not listed in a transaction.
recognised stock exchange.

17. Sale or purchase of any immovable Amount exceeding ten lakh rupees or valued
property. by stamp valuation authority referred to in
section 50C of the Act at an amount exceeding
ten lakh rupees.

18. Sale or purchase, by any person, of Amount exceeding two lakh rupees per
goods or services of any nature transaction:
other than those specified at Sl. Nos.
1 to 17 of this Table, if any.

Provided that where a person, entering into any transaction referred to in this rule, is a
minor and who does not have any income chargeable to income-tax, he shall quote the
permanent account number of his father or mother or guardian, as the case may be, in the
document pertaining to the said transaction:

Provided further that any person who does not have a permanent account number and
who enters into any transaction specified in this rule, he shall make a declaration in Form
No.60 giving therein the particulars of such transaction [either in paper form or
electronically under the electronic verification code in accordance with the procedures, data
structures, and standards specified by the Principal Director General of Income-tax
(Systems) or Director General of Income-tax (Systems)]:

Provided also that the provisions of this rule shall not apply to the following class or classes
of persons, namely:—

(i) the Central Government, the State Governments and the Consular Offices;

12
 (ii) the non-residents referred to in clause (30) of section 2 of the Act in respect of the
transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or 10
or 12 or 14 or 15 or 16 or 17 of the Table:

[Provided also that a person who has an account (other than a time deposit referred to at
S.No.12 of the Table and a Basic Saving Bank Deposit Account) maintained with a banking
company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949),
applies (including any bank or banking institution referred to in section 51 of that Act) and
has not quoted his permanent account number or furnished Form No. 60, as the case may
be, at the time of opening of such account or subsequently, he shall furnish his permanent
account number or Form No.60, as the case may be, to the person specified in clause (c) of
sub-rule (1) of rule 114C on or before the[30th day of June], 2017.] ]

Explanation.—For the purposes of this rule,—

(1) "payment in connection with travel" includes payment towards fare, or to a travel
agent or a tour operator, or to an authorised person as defined in clause (c) of
section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999);

(2) "travel agent or tour operator" includes a person who makes arrangements for air,
surface or maritime travel or provides services relating to accommodation, tours,
entertainment, passport, visa, foreign exchange, travel related insurance or other
travel related services either severally or in package;

(3) "time deposit" means any deposit which is repayable on the expiry of a fixed
period.]

13