Search
High-Value Transactions and Their Limits in India
August 28, 2017
Transactions of amounts exceeding a certain limit are required to be linked with the initiator’s PAN. However, if you don’t attach your PAN with such transactions, then these were will be considered as “High-value non-PAN transactions” and come under the scanner of the Income Tax department.
High-Value Financial Transactions and their limits
The following are some of the examples of high-value transactions for which you are supposed to quote your PAN:
- Purchasing shares of Rs. 10 lakh or more.
- Making credit card payments of Rs. 1 lakh or more in cash
- Fixed Deposits amounting to Rs. 10 lakh or more in a particular fiscal year
- Buying or selling of a property that costs Rs. 30 lakh or more
- Investing Rs. 10 lakh or more in bonds issued by a company
If you don’t quote your PAN when initiating any of the above transactions then the same will be reported to the IT department the concerned authority (Banks, Company that has issued the bonds, etc.) through the Annual Information Report (AIR). In response to that, the IT department will send you a notice to explain yourself. Failing to do that within 15 days can result in a legal action.
What to do when the IT department sends you a notice?
If you have received a notice from the IT department concerning a high-value non-PAN transaction, then you can respond to the same online easily. Below is the process that you can follow for that:
- Go to http://incometaxindiaefiling.gov.in/ and log in with your credentials
- Click “Compliance” and then “Non-Pan transactions”
- Enter your Transaction Sequence Number (this is provided by the IT department in the notice sent to you) and click “Search”
- A transaction confirmation message will display on the screen.
- Click “I believe that this transaction relates to me” and then “Submit to View Further Details”.
- Pick the appropriate options as given afterward. The IT department will contact you accordingly later on.
The bottom-line of all this is that you must quote your PAN wherever required. Otherwise, you may hear from the IT department and deal with unnecessary complications.
