Income Tax Act

Director, Central Board of Direct Tax, in exercise of the power conferred by section 295 of the Income Tax Act, 1961(43 of 1961) has made the 5th Amendment in Rule 114B. These Rule may be called the Income Tax (Fifth Amendment) Rules, 2011.By the amendment, CBDT has issued Notification No.27/2011 dt. 26.05.2011, amending Rule 114B of the Income Tax Rules, 1962. With effect from 01.07.2011, certain additional transactions have been specified where PAN quoting has been made mandatory for persons entering into the following transactions:

1. Payment in Cash exceeding Rs. 25,000/- at any one time to a tour operator or to an authorized person as defined in clause © of section 2 of the Foreign Exchange Management Act,1999 in connection with tour to any foreign country,

2. Making application to Banking Company to which the Banking Regulation ACT,1949 apply or to any other company for issue of debit card,

3. Payment of an amount aggregating fifty thousand rupees or more in a year as life insurance premium to an insurer as defined in clause (a) of section 2 of the Insurance Act,1938(4 of 1938),

4. Payment to a dealer – Of an amount of five lakh rupees or more at any one time or Against a bill for an amount of five lakhs rupees or more for purchase of bullion or jewellery