Various sections of the Income Tax Act make obtaining PAN mandatory and transactions where quoting PAN is mandatory to ensure the same is authenticated.
On 10th of May 2022, the CBDT notified1 transactions where PAN must be obtained by the person entering into such transactions . This has been inserted in Rule 114 BA, in the Income Tax rules, 1962 (IT Rules).
The summary of the transactions for which PAN must be obtained are:
The taxpayers entering into such transactions must make the application at least 7 days prior to such transactions.
The notification also inserted Rule 114BB in the IT rules, stating that the banks/co-operative banks/postmaster general receiving the documents must verify that the PAN or AADHAR number is duly quoted and authenticated.
The notification will be effective from 25th of May, 2022.
1CBDT Notification No. 53/2022 dated 10 May 2022