Transactions Where PAN Is Mandatory In India Full List After Form 97 Replaces Form 60
Form 60, used for transactions without a PAN, has been replaced by Form 97, expanding the scope of mandatory PAN usage.
The requirement for providing a Permanent Account Number (PAN) has been broadened across various financial transactions in India, following the introduction of Form 97 which replaces Form 60. This change impacts individuals and entities engaging in high-value transactions, aiming to enhance transparency and curb tax evasion. The updated regulations mandate PAN submission for transactions such as property sales exceeding ₹10 lakh, opening bank accounts, and making investments in securities. Non-compliance can lead to penalties under Section 270A of the Income Tax Act, potentially triggering scrutiny from tax authorities and impacting Input Tax Credit claims for businesses. Taxpayers must ensure accurate PAN reporting to avoid these repercussions.
Section 139A of the Income Tax Act mandates the use of PAN for specific transactions to ensure tax compliance and track financial activities. Failure to comply with this section can attract penalties under Section 270A, including fines and potential prosecution, as the tax authorities can deem the transaction non-compliant.
The shift towards mandatory PAN usage reflects a broader trend of enhanced financial surveillance by the government. CAs and CFOs should proactively advise clients on these changes to mitigate risks of penalties and scrutiny. This also presents an opportunity to streamline compliance processes and leverage technology for accurate PAN reporting.
The expanded PAN requirement ensures greater transparency in financial dealings, aiding in tracking high-value transactions and reducing tax evasion. This impacts CAs and CFOs by increasing compliance obligations and the need for meticulous record-keeping.