High Value Non-PAN Transaction – How to own or response online?

Quoting PAN number for few financial transactions is mandatory. However, if you don’t quote your PAN number, then such high value transactions are called High Value Non-PAN Transaction. Since few months, IT Department eyeing on such transactions and sending notices to concerned individuals.

First, let us know where we have to quote PAN numbers mandatorily.

Where to quote PAN number (as per new rules of and limits of 2016)?

# Quoting of PAN is mandatory for any purchase or sale exceeding the value of Rs.2 lakh. This purchase may be either by cash or card.

# Quoting of PAN is mandatory on sale or purchase of any immovable property valued at Rs.10 lakh. Properties valued by Stamp Valuation authority at the amount exceeding Rs.10 lakh will also need PAN.

# On sale or purchase of a motor vehicle (excluding two wheelers).

# The old rule of quoting PAN while depositing the amount exceeding Rs 50,000 with Post Office Savings Bank has now been relaxed. However, you still need to quote PAN for all Post Office time deposits. Deposits aggregating to more than Rs 5 Lakh during the FY will also need PAN.

# While opening Pradhan Mantri Jan Dhan Yojana, PAN is not mandatory. However, for all other types of bank accounts, including those opened with co-operative banks, will have to quote PAN.

# Quoting PAN mandatory when there is a cash payment for a hotel or restaurant bill of Rs.50,000 or more.

# Payment in cash in connection with travel to any foreign country of an amount exceeding Rs 50,000 at any one time (including any such Forex purchases).

# On purchase of bullion or Jewellery worth of  Rs.2 lakh per transaction.

# If you are using Prepaid Money wallets and Gift cards (Pre-paid instruments & cash cards), quoting your PAN is now mandatory for transactions aggregating to more than Rs 50,000 in a year.

# PAN is mandatory if you buy shares, which are not listed on stock exchanges and which are worth more than Rs.1 lakh per transaction.

# Quoting PAN is mandatory if payment is in cash for the purchase of Bank Drafts (DD), pay orders or banker’s cheques for an amount aggregating Rs 50,000 or more during any one day.

# Quoting PAN is mandatory if you deposit in cash of Rs.50,000 or more with a bank during any one day. This is also applicable on DDs, Pay orders and Bankers Cheque.

# Quoting PAN is mandatory while applying for the Credit or Debit card.

# Quoting PAN is mandatory on contract for sale and purchase of financial securities worth Rs.1 lakh.

# The payment exceeding Rs.50,000 on debentures and bonds.

# While investing in Mutual Funds, where the purchase price is Rs.50,000 or more.

# If your aggregate life insurance premium is Rs.50,000 or more than that in a year.

# It is mandatory to submit a photocopy of your PAN card while obtaining registration under different statutes like Excise, Service Tax, Value Added Tax (VAT) etc.,

# While filing your IT Return.

# If you are staying in a rented property, you need to submit your landlord’s PAN details to your employer to claim HRA allowance (if HRA exemption is above Rs.1 lakh per year).

# If the person with whom transaction has been entered and if TDS has to be deducted, then quoting or providing PAN will be mandatory. If you will not provide the PAN, then TDS at the rate of 20% will be deducted.

Now let us move to the definition of High-Value Financial Transactions.

Meaning of High Value Financial Transactions and their limits (effective from 1st April 2016)

Certain financial transactions are considered as High Value financial Transactions by Income Tax Department. Let us see the list of all such high value financial transactions. If you did any such transactions and not quoted the PAN number, then such transactions are called as “High Value Non-PAN Transaction”.

  • Cash aggregating to Rs.10 lakh or more per year deposited in your Savings Bank or Post Office Account.
  • One or more time deposits (FDs but other than a time deposit made through the renewal of another time deposit) of a person aggregating to Rs. 10 lakh or more in a financial year of a person.
  • Credit Card payments of more than Rs.1 lakh or more by cash or Rs.10 lakh or more in any other mode per year in aggregate.
  • Buying mutual fund units worth Rs.10 lakh or more.
  • Investing Rs.10 lakh or more in Debentures or Bonds issued by any company.
  • Buying shares worth Rs.10 lakh or more.
  • If you buy or sell an immovable property worth Rs.30 lakh or more.
  • Payment made in cash for the purchase of bank drafts or pay orders or banker’s cheque of an amount aggregating to Rs. 10 lakh or more in a financial year.
  • Payments made in cash aggregating to Rs. 10 lakh or more during the financial year for the purchase of pre-paid instruments issued by Reserve Bank of India.
  • Cash deposits or cash withdrawals (including through bearer’s cheque) aggregating to Rs. 50 lakh or more in a financial year, in or from one or more current account of a person.
  • Cash payment exceeding Rs.2 lakh for buying, by any person, of goods or services of any nature.
  • Receipt from any person for a sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through the issue of traveler’s cheque or draft or any other instrument of an amount aggregating to Rs. 10 lakh or more during a financial year.
  • Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to Rs. 10 lakh or more in a financial year.

What do you mean by High Value Non-PAN Transaction?

Now if you did any such high value financial transactions, then it will be reported to IT Department automatically. Reporting will be by Banks (in case of cash and credit card dealings) or Post Office, Mutual Fund Companies, Company or institution issuing bonds or debentures, Company issuing shares through public or rights issue (in case of buying shares), Registrar or Sub-Registrar (in case of property dealings) and RBI Officer (in case of RBI bonds).

Such reporting system by all these financial institutes related to such high value transactions is called as AIR (Annual Information Report).

When you do such High Value Non-PAN Transaction, then it will be automatically come to the notice of IT Department. During this High Value Non-PAN Transaction, if you not quote your PAN number, such transactions is called High Value Non-Pan Transaction.

Whenever such High Value Non-PAN Transaction will come to the notice of IT Department, theny it issues notices to all such individuals either to accept such transactions as their own else response to such questioning.

Such owning or responding to all such High Value Non-PAN Transaction is available online. You no need to visit IT Department.

However, if you will not respond to such tax notice within 15 days, then you will have to face action.

How to own or response to the notices related to High Value Non-PAN Transaction online?

As I pointed earlier, if you receive any such notices from Income Tax Department, then you no need to visit IT Department personally. You can own the transaction or response to the notice online itself.

IT Department introduced this new feature whereby quoting the Unique Transaction Sequence Number you can search the details. Unique Transaction Sequence Number is the number which appears in the notice of IT Department.

Here is the process of how to own or response to the notices related to High Value Non-PAN Transaction online.

# Visit the Homepage of e-Filing and click on “Login Here”. Once you login, then go to “Compliance”–> Non-Pan Transactions.

High Value Non-PAN Transaction own or disown online

# Next enter the Transaction Sequence Number (TSN) in the text box and click on “Search” tab to view the transaction details.

Transaction Sequence Number or TSN of IT Dept

# Then you will see the transaction confirmation screen as below. If the transaction details are related to you, click on “I believe that this transaction relates to me” and click on “Submit to View Further Details” tab, as shown in the below screen.

Non-PAN Transactions Transaction Confirmation.jpg

# Then the details of such transactions appear in detail. Below the same screen, you will find the options to own or disown the transactions. The screen looks like below.

History of Action Non-PAN Transactions

Finally based on the responses you select, the message will appear. Once you submit the response, then they are saved. However, at the later stage, you can view or download the responses in PDF format as and when you need. You can revise the response also.

Below is the screen to view your responses to such High Value Non-PAN Transaction.

View Response to Non-PAN Transaction

Based on your owning and response, the next steps will be processed. The IT Department will look into the responses and respond to you again.

Hope this information is helpful to all to understand of where to quote your PAN number, what do you mean by high value financial transaction and what do you mean by high value Non-PAN transaction and how to respond to such notices.

26 Comments

  1. Hi, I got similar email from Incometax department to link my pan number for transaction made in 2011-2012. No where in the letter transaction sequence number is quoted. How do I get transaction sequence number?

    Reply
    • Chandrasekhar-First check whether those transactions were related to you or not.

      Reply
  2. I have received a letter from IT Deptt. regarding high value non PAN based transaction. But when i am going through the process as explained by you, massage displayed that your Transaction Sequence No. is not correct.
    Plz. explain how to handle this situation.Could you response my issue at the earliest??????

    Reply
    • Tara-Try once again. If you get the same message, then approach your AO.

      Reply
  3. dear sir i have purchased agriculture land in my spouse name in 1996,it was funded by me.now this land has come in master plan.devlopement charges are going to be more when i apply for map approval from competent authority.somebody has suggested that spouse can gift to me or my children a portion of land ,where house can be constructed,in order to avoid massive charges .is this fact right.will land come in AIR.I feel since no money transaction taking place ,it should not.what are the approx developement charges.what are other hurdle
    warm regards

    Reply
    • Yashpal-I am not sure in what way charges will comes down due to gift.

      Reply
  4. Purchased property in 2013 and declared my PAN (my spouse – NRI had issued a PoA for me). I checked my registered sale deed and TDS acknowledgment and it has my PAN card. I received a letter (dated 30th July) from govt only today Oct 4th abroad that this property is not linked to my PAN. There is that big pink sticker of IDS-2016 (for sep 30th deadline). Should I send a physical letter showing that registered sale deed and TDS reflects this property? Or should I use the non-pan transaction (but there is no provision for me to add that this property registered document reflects my PAN)?

    Been a NRI for 18 years and out of which 3 years I went back to India to work in India. I have filed tax return from 2005 through 2013 but after that there was no income, so I didn’t file tax. Should I file zero income tax from 2013-till date? Is it mandated?

    Reply
    • Viji-You can inform them that purchase was done using the PAN numbers and also the TDS details. Let us see what they reply.

      Reply
      • Where do I reply this? In the online portal, no such option is there. Should I send a courier?

        Reply
        • Thank you. Where do I reply this? In the online portal, no such option is there. Should I send a courier? Or should I send an email to the email address provided in their letter?

          Reply
          • Viji-You can reply it in online portal by selecting the proper options. Please re-check the options carefully.

            Reply
            • Thankyou so much. When the funds are from NRI and part of india (duly filed returns), how do we show this?

              Reply
  5. Dear Basu,
    great write up!
    Thanks

    Reply
  6. Hello, My wife and i purchased a property from Bengal Shrachi, which went through registration in 2013. We live abroad. During the registration, only i could travel to India. My wife provided me the power of attorney. My name is primary in the purchase of the property. In the deed, both my wife and my PAN were provided. But recently, Indian IT department sent a letter to my wife’s Indian address, stating that a NON-PAN transaction took place on the day of the registration. The amount stated against the transaction was also not the purchase value of the property from Bengal Shrachi, rather the market value on that day. What step should we be taking?

    Reply
    • Krishna-As per rule either the guidance value or actual value (whichever is lower) will be considered for registration. Hence, check whether your wife shown this purchase or the source of money while buying this property. In my view both are missing (source of money and the value of property mismatch).

      Reply
      • Thank you for your help

        Reply
  7. My mother had sold a property for 41 Lakhs in 2013, which was originally purchased for 6 lakhs. During sale, PAN was not quoted. The IT dept. has sent a notice asking to link the transaction to the PAN. But in the notice it is mentioned that Sale value is 67 lakhs. Have they taken value under section 50C? How shoud i respond – accept that the transaction is genuine or dispute saying that the amount mentioned is wrong?

    Reply
    • Lokesh-In your case transaction is genuine but you have dispute regarding the sale value. You can response it by using the facility explained in above post.

      Reply
      • Which option should i select?

        Reply
        • Lokesh-Select the one last option and once you do all research then you can respond accordingly.

          Reply
  8. My mother(unemployed senior citizen) had invested around 9 lakhs in few FDs across different banks in the year 2007. She has not quoted the PAN. The money has double over the years. Does this have to be declared under the ongoing IDS scheme? Or the PAN can be quoted now without getting into trouble?

    Reply
    • Aryan-You no need to declare in IDS. However, provide the PAN details to all Banks.

      Reply
  9. EXCELLENT INFORMATION.VERY GOOD EFFORT TO EDUCATE LAYMAN

    Reply

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