Examine with reasons, whether quoting of PAN in the following transactions is mandatory or not, as per the provisions of Income-tax Act, 1961 for…

CA Intermediate · Taxation · MTP · September 2025
Examine with reasons, whether quoting of PAN in the following transactions is mandatory or not, as per the provisions of Income-tax Act, 1961 for A.Y. 2025-26: (i) Mr. Arjun makes a cash payment of 50,000 to Hotel Vista, Dehradun against a bill raised by the hotel. (ii) Ms. Kavita enters into a contract for the purchase of debentures, for a value of 1,85,000. (iii) Mr. Ramesh makes a payment of 57,000 for the purchase of units of a mutual fund. (iv) Ms. Sneha makes a payment for the purchase of immovable property valued at 9,50,000. Stamp duty value of the property is 9,75,000.

Suggested Answer and Working Notes:

(i) PAN is not required to be quoted: Mr. Arjun is not required to quote his PAN while making payment - 50,000 in cash to a hotel Vista, Dehradun, since such payment does not exceed - 50,000. (ii) PAN is mandatorily required to be quoted: Ms. Kavita is required to quote her PAN while making payment of 1,85,000 for purchase of debentures, since the amount of the transaction exceeds - 50,000. (iii) PAN is mandatorily required to be quoted: PAN has to be mandatorily quoted while making payment of 57,000 to Mutual Funds for purchase of its units, since such payment exceeds - 50,000 (iv) PAN is not required to be quoted: Ms. Sneha is not required to quote her PAN while making payment - 9,50,000 towards purchase of immovable property, since such payment does not exceed - 10,00,000

Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax

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