PAN will be mandatory for opening an account in the cooperative banks, said Finance Minister Arun Jaitley on Tuesday. He added that to counter domestic black money, the Centre will make it mandatory to furnish PAN (Permanent Account Number) for cash dealings above Rs 2 lakh.
In Budget 2015-16, Jaitley had proposed making PAN mandatory for all transactions over Rs 1 lakh, but Adhia said it has been revised upwards to “give some breathing time to people” based on discussions with stakeholders.
The Central Board of Direct Taxes has also amended the reporting requirement of PAN for other specified transactions. “Persons who do not hold PAN are required to fill a form and furnish any one of the specified documents to establish their identity,” said an official release.
Starting from the New Year, quoting of PAN will be mandatory for all transactions of immovable property of over Rs 10 lakh, from the earlier threshold of Rs 5 lakh. It will also be required for all term deposits of over Rs 50,000 in not only banks but also in co-operative banks, post offices, nidhis, and non-banking finance companies.