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.