Exemption from PAN Number in India

Exemption from providing PAN Number in India

Their are many financial transactions in India that make it compulsory to provide a Pan number. Some such transactions that require a Pan are:

1. Sale or purchase of any immovable property valued at five lakh rupees or more; 
2. Sale or purchase of a motor vehicle or vehicle, sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle.
3. Any fixed deposit, exceeding fifty thousand rupees, with a banking company ;
4. Deposit that exceeds fifty thousand rupees, in any account with Post Office Savings Bank;
5. A contract of a value exceeding one lakh rupees for sale or purchase of securities;•Opening a bank account.
6. When making an application for installation of a telephone connection;
7. When making payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time.
8. When paying in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand rupees or more during any one day.
9. When depositing cash aggregating fifty thousand rupees or more with a bank during any one day.
10. When making payment in cash to travel to any foreign country  if the amount involved exceeds twenty-five thousand rupees at any one time.

Non Residents Exempt from Quoting PAN

Even though it is compulsory to quote your Pan number when conducting several financial transactions in India, Non residents are exempt from doing so for some financial transactions. The provisions of section 139A do not apply to following persons:

• Persons who have agricultural income and are not in receipt of any other income chargeable to income-tax. Such persons are in lieu of providing Pan numbers, required to make a declaration in Form No. 61 to avail an exemption.
• A non residents have to furnish a copy of his passport when claiming exemption from quoting PAN where allowed and also make a declaration in Form 60.

Form 60 refers to: Form of declaration to be filed by a person who does not have a permanent account number and who enters into any transaction specified in rule 114B.

Form 61 refers to: Form of declaration to be filed by a person who has agricultural income and is not in receipt of any other income chargeable to income-tax in respect of transactions specified rule 114B. Exemption from quoting PAN is not available for operating stock trading accounts in India and any Non Resident conducting such activities MUST have a PAN card and provide their Personal Account Number.

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