|
Minister of State for Finance, Shri S.S. Palanimanickam affirmed in Rajya Sabha today that Finance ministry has issued a notification making PAN mandatory in respect of the following transactions: (I) buying a credit cards; (ii) making payment of Rs. 50,000/- or more to a Mutual Fund for purchase of its units; (iii) making payment of Rs. 50,000/- or more to a company for acquiring shares issued by it; (iv) making payment of Rs. 50,000/- or more to a company or an institution for acquiring debentures or bonds issued by it and (v) making payment of Rs. 50,000/- or more to the Reserve Bank of India for acquiring bonds issued by it.
PAN is a unique identification number provided to an assessee. Therefore, compulsory quoting of PAN in the above transactions will facilitate collation and verification of information received through Annual Information Return. This will enable the Income-tax department to reduce interface with public for collection of information. This measure will also widen the tax base.
A minor is not required to have a PAN if he does not have any income other than income includible in the income of his parents. In the case of a credit card issued in the name of a minor, as ‘add-on’ to the guardian, the PAN of the guardian is required to be quoted.
Shri Palanimanickam gave this information in reply to a question raised by Shri K. Rama Mohana Rao.
BSC/DN-167/05
|
