Hyderabad: The Central Government has made PAN mandatory for several high-value financial transactions, introducing stricter compliance measures to improve transparency and track significant monetary activities.
Under the new rules, individuals will be required to provide their Permanent Account Number (PAN) while carrying out specified transactions involving assets, investments and major purchases. Authorities said transactions may not be processed if PAN details are not furnished.
The revised norms make PAN compulsory for the purchase or sale of assets valued above Rs 20 lakh. Similarly, the purchase of valuable goods or services worth more than Rs 2 lakh will also require PAN details.
Investors undertaking the purchase or sale of shares exceeding Rs 1 lakh in value will have to provide their PAN information. The rules are aimed at strengthening financial monitoring and ensuring proper reporting of significant transactions.
PAN mandatory transactions cover assets, vehicles and investments
The new regulations also require PAN details for the purchase of cars or motorcycles valued above Rs 5 lakh. In addition, individuals seeking to open a demat account must furnish their PAN as part of the account-opening process.
Officials stated that failure to provide PAN information could result in the suspension or rejection of the transaction. Financial institutions and other entities processing such transactions are expected to ensure compliance with the revised requirements.
The government has also warned against providing incorrect PAN details. Individuals who furnish false information may face a penalty of Rs 10,000 and could be subjected to scrutiny by the Income Tax Department.
The move is intended to strengthen financial accountability, improve tax compliance and enhance the monitoring of high-value transactions across sectors. Authorities have advised citizens to ensure that their PAN details are accurate and updated before undertaking major financial activities.