Pan card is now mandatory for transactions over ₹2.5 lakh

The government has made it compulsory to use Permanent Account Number – PAN for financial transactions of ₹2.5 lakh or more in the Budget for 2018-19.

This rule will come into effect from 1 April 2018.

The businesses that are involved in such transactions will use the PAN number as their Unique Entity Number for non-individuals.

This has been done till a proper system is created for businesses involved in financial transaction of an amount of Rs 2.50 lakh or more in a financial year.

Until then they will need to apply to an Assessing Officer for allotment of PAN. The finance bill 2018 carries the instructions in this regard.

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