New IT Act 2025 — Knowledge Bank

Transactions in relation to which Permanent Account Number is to be quoted or applied for purposes of section 262(1)(f) and 262(10)(c) and (e)

Rule 159 — Transactions in relation to which Permanent Account Number is to be quoted or applied for purposes of section 262(1)(f) and 262(10)(c) and (e)

Parent Act Section(s): Section 2, Section 3, Section 6

Full Text

  1. Transactions in relation to which Permanent Account Number is to be quoted or applied for purposes of section 262(1)(f) and 262(10)(c) and (e). — (1) Every person shall quote his Permanent Account Number in all documents, pertaining to the transactions specified in column 2 for value of transaction specified in column 3 of the following Table : — Table Sl.no. Nature of transaction Value of transaction Person receiving or issuing the document in relation to transaction in column (2) 1 2 3 4
  2. Making an application to any banking All such transactions. (i) Manager or officer of a banking company or a co-operative bank to company or co-operative bank; or which the Banking Regulation Act, (ii) the principal officer of the 1949 (10 of 1949), applies (including company; or any bank or banking institution referred (iii) the principal officer of the to in section 51 of that Act) or to any institution, other company or institution, for issue as the case may be. of a credit card.
  3. Opening of an account with a All such transactions. The depository, participant, custodian of depository, participant, custodian of securities or any other person registered securities or any other person under section 12(1A) of the Securities and registered under section 12(1A) of Exchange Board of India Act, 1992 (15 of 1992). the Securities and Exchange Board of India Act, 1992 (15 of 1992).
  4. Payment to the Reserve Bank of India, Amount exceeding The officer of the Reserve Bank of India, constituted under section 3 of the ₹ 50000. constituted under section 3 of the Reserve Reserve Bank of India Act, 1934 (2 of Bank of India Act, 1934 (2 of 1934), or of
  1. for acquiring bonds issued by it. any agency bank authorised by the Reserve Bank of India.

  1. Payment to a Mutual Fund for Amount exceeding The trustee or any other person duly purchase of its units. ₹ 50000. authorised by the trustee of a Mutual Fund.

  2. A contract for sale or purchase of Amount exceeding (i) The principal officer of the securities (other than shares) as defined ₹ 100000 per company; or in section 2(h) of the Securities transaction. (ii) stock-broker, sub-broker, share Contracts (Regulation) Act, 1956 (42 of transfer agent, banker to an issue, 1956). trustee of a trust deed, registrar to issue, merchant banker, underwriter, portfolio manager, investment adviser and such other intermediaries registered under section 12(1) of the Securities and Exchange Board of India Act, 1992 (15 of 1992), as the case may be.

  3. Deposit with — Cash deposits (i) Manager or officer of a (i) a banking company or a co- aggregating to ten lakh banking company or co- operative bank to which the rupees or more in a operative bank; or Banking Regulation Act, 1949 (10 financial year, in one (ii) postmaster; or of 1949), applies (including any or more account of a (iii) the principal officer of the bank or banking institution referred person institution, to in section 51 of that Act); or as the case may be. (ii) post office.

  4. Withdrawal with — Cash withdrawals (i) Manager or officer of a (i) a banking company or a co- aggregating to ten lakh banking company or co- operative bank to which the rupees or more in a operative bank; or Banking Regulation Act, 1949 financial year, in one (ii) postmaster; or (10 of 1949), applies or more account of a (iii) the principal officer of the (including any bank or banking person institution, institution referred to in as the case may be. section 51 of that Act); or (ii) post office.

  5. Sale or purchase of — Amount exceeding ₹ The person who sells the motor vehicle or (i) motor vehicle or vehicle, as 500000. motor cycle. defined in section 2(28) of the Motor Vehicles Act 1988 (59 of 1988), which requires registration by a registering authority under Chapter IV of that Act, except ‗tractor‘ as defined in section 2(44) of the said Act; or (ii) motor cycle as defined in section 2(27) of the Motor Vehicles Act 1988 (59 of 1988).

  6. Sale or purchase, by any person, of Amount exceeding ₹ The principal officer of a company shares of a company not listed in 100000 per transaction issuing such shares recognised stock exchange.

  7. Payment to a company or an institution Amount exceeding ₹ The principal officer of a company or an for acquiring debentures or bonds issued 50000 institution issuing such bonds or by it. debentures.

  8. Purchase or sale or gift or joint Amount exceeding Inspector-General appointed under development agreement by any person twenty lakh rupees or section 3 of the Registration Act, 1908 of any immovable property. valued by stamp (16 of 1908) or Registrar or Sub- valuation authority Registrar appointed under section 6 of that Act. referred to in section 78, at an amount exceeding twenty lakh rupees.

  9. Opening an account other than a time- All such transactions. (i) Manager or officer of a banking deposit referred in Sl. No. 13 and a company or co-operative bank; or Basic Savings Bank Deposit Account (ii) the principal officer of the with institution, (i) a banking company; or as the case may be. (ii) a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act).

  10. A time deposit with — Amount exceeding ₹ (i) Manager or officer of a banking (i) a banking company or a co- 50000 or aggregating company or co-operative bank; or operative bank to which the to more than ₹ 500000 (ii) postmaster; or Banking Regulation Act, 1949 during a financial year. (iii) the principal officer of the company; (10 of 1949), applies (including or any bank or banking institution referred to in section 51 of that (iv) the principal officer of the Act); or institution, (ii) a post office; or as the case may be. (iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or (iv) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public.

  11. Commencement of account-based All such transactions The manager or officer of an insurer. relationship with an insurer as defined in where insurance section 2(9) of the Insurance Act, 1938 premium exceeds ₹ (4 of 1938) 50000 during a financial year.

  12. Payment to Payment in cash of an The person issuing the document (i) a hotel or restaurant; or amount exceeding ₹ including the bill.

(ii) a convention Centre; or (iii) a banquet hall; or (iv) any person engaged in event

management, against a bill or bills at any one time. 16. Sale or purchase by any person, of Amount exceeding ₹ The person issuing the document goods or services of any nature other 200000 including the bill. than those specified at Sl. Nos. 1 to 15, per transaction. if any. (2) In respect of transactions mentioned in column (2) of the Table in sub-rule (1) — (a) any person who is a minor, not having any income chargeable to tax, and who enters into any of the said transactions, shall quote the Permanent Account Number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction; (b) any person, not being a company or a firm, and who does not have a Permanent Account Number, entering into any of the transactions mentioned at Sl. Nos. 11 to 16, shall make a declaration in Form No. 97 giving therein the particulars of such transaction; (c) out of the transactions mentioned in clause (ii), a foreign company entering into transactions at Sl. No. 12 or 13 in an IFSC banking unit, who does not have — (I) a Permanent Account Number; and (II) any income chargeable to tax in India, shall make a declaration in Form No. 97. (3) For the purposes of section 262(1)(f), any person, not being a company or a firm, and who does not have Permanent Account Number, entering into— (a) any of the transactions mentioned at Sl. No. 1 to 10; (b) transaction mentioned at Sl. No. 11, where amount of immovable property exceeds forty-five lakh rupees or more, or its value as per stamp valuation authority referred to in section 78 of the Registration Act, 1908 (16 of 1908) exceeds forty-five lakh rupees, shall apply for Permanent Account Number. (4) The provisions of sub-rule (3) shall not apply in a case, — (a) where the person carrying out transactions as per Sl. Nos. 1 to 10 of column (2) of the Table in sub- rule (1), is a non-resident (not being a company) or a foreign company; (b) the transaction is entered into with an IFSC banking unit; and (c) such non-resident (not being a company) or the foreign company does not have any income chargeable to tax in India. (5) The person referred to in column (4) of Table in sub-rule (1), who has received or issued any document, shall ensure that— (a) Permanent Account Number after verification, has been duly and correctly mentioned therein or as the case may be, a declaration in Form No. 97 has been duly furnished with complete particulars; (b) the valid Permanent Account Number or the fact of furnishing of Form No. 97, is duly mentioned in the records maintained for the transactions referred to in column (2) of Table in sub-rule (1); and (c) the Permanent Account Number or the details of Form No. 97 are linked and mentioned in any information furnished to the income-tax authority or any other authority or agency under any provision of the Act or any rule made thereunder. (6) The provisions of sub-rule (1) shall not apply to the following class or classes of persons:— (a) the Central Government, State Governments and the consular offices; and (b) the non-residents referred to in section 2(72) in respect of the transactions referred to against Sl. No. 1 or 3 or 15 or 16 of the Table. (7) For the purposes of this rule,- (a) “IFSC banking unit” means a financial institution defined under section 3(1)(c) of the International Financial Services Centres Authority Act, 2019 (50 of 2019), that is licensed or permitted by the International Financial Services Centres Authority to undertake permissible activities under the International Financial Services Centres Authority (Banking) Regulations, 2020; and (b) “time deposit” means any deposit which is repayable on the expiry of a fixed period. (8) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall lay down the formats and standards along with procedure as regards the manner of authentication of Permanent Account Number.

Cross-References

Act Sections Referenced

  • None

Practical Notes

[To be populated — interpretive notes, circular references, case law pointers]

Graph View

Backlinks