New Income Tax Act: The draft of the new Income Tax rules has been released. It states that quoting a Permanent Account Number (PAN) will not be required for motor vehicle transactions worth less than Rs 5 lakh. This means that anyone buying or selling a car, other vehicle, or motorcycle worth less than Rs 5 lakh will not be required to provide their PAN. Currently, quoting a PAN is mandatory for buying or selling a vehicle. If the vehicle’s value is less than Rs 400, it is mandatory to provide the PAN number.
On which transactions will PAN have to be mentioned?
The Income Tax Department has sought opinion on the new Income Tax rules by February 22. Draft Rule 159 specifies the types of financial and high-value transactions in which PAN will be required. This rule states that PAN will have to be quoted while opening a bank or demat account, applying for a credit card, depositing or withdrawing large amounts of cash, buying mutual fund units, bonds or securities, buying high-value motor vehicles or buying property. PAN will also have to be quoted while paying a large bill for a hotel or any event. The purpose of Rule 150 is to track large financial transactions, increase tax compliance and prevent cases of tax evasion.
PAN will have to be given if the transaction value exceeds a certain limit
According to the new rule, if a person deposits Rs 10 lakh or more in cash in one bank account or withdraws Rs 10 lakh or more in a financial year, then PAN will have to be given. Currently, PAN has to be given if cash of more than Rs 50,000 is deposited in a bank account in a day. PAN will have to be given if the bill of hotel or restaurant, convention centre or banquet hall is more than Rs 1 lakh. Currently, it is necessary to give PAN if the bill of hotel or restaurant is more than Rs 50,000.
New income tax rules will be applicable from April 1
Finance Minister Nirmala Sitharaman announced in the Union Budget on February 1 that the Income Tax Act, 2025, will come into effect on April 1 of this year. This Act replaces the Income Tax Act, 1961. The number of rules in the new Income Tax Act has been reduced. An effort has been made to simplify the language of the rules. The common person can easily understand the new rules, eliminating the need for a tax expert. The language of the Income Tax Act, 1961, is not simple, causing difficulties for taxpayers.
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Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
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