Hospitality

PAN must for cash payment of hotel bill over Rs. 50,000 from Jan 1

DELHI

Furnishing Permanent Account Number (PAN) will be mandatory from January 1 for cash transactions such as hotel or foreign travel bills exceeding Rs. 50,000 – a move aimed at curbing the black money menace.

Besides, PAN will be a must for all transactions, including purchase of jewellery, above Rs. 2 lakhs in cash or through card with effect from January 1, 2016, the Finance Ministry said in a notification, reports NDTV.

PAN will also be mandatory on purchase of immovable property of over Rs. 10 lakh. This will be a relief to small home buyers as previously the government had proposed to make PAN mandatory for property worth Rs. 5 lakh.

Quoting of PAN will also be mandatory for term deposits exceeding Rs. 50,000 at one go or Rs. 5 lakh in a year with banks, Post Offices and NBFCs.

The notification said PAN would be mandatory for payments of more than Rs. 50,000 for cash cards or prepaid instruments as well as for acquiring shares of unlisted companies for Rs. 1 lakh and above.

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