For cash transactions above what amount is the PAN card mandatory as per Section 269ST of the Income Tax Act?

The correct answer is ₹2,00,000.

In News

• As per Section 269ST of the Income Tax Act, PAN card details must be collected for any cash transaction exceeding ₹2 lakhs in a single transaction.
• This regulation aims to prevent large untracked cash transactions and enhance financial transparency.

Key Points

• Cash transactions of ₹2 lakhs or more require mandatory collection of the payer’s PAN.
• Non-compliance with PAN collection attracts penalties under the Income Tax Act.
• MocDoc introduced automated PAN validation for cash payments above this limit to ensure compliance.
• Smaller cash transactions below ₹2 lakhs do not require PAN collection.
• This rule is designed to promote financial transparency and reduce cash-based tax evasion.

Additional Information

• Section 269ST of Income Tax Act
  • Prohibits receipt of cash payments of ₹2 lakhs or more without PAN.
  • Targets curbing unaccounted cash transactions.
• Penalties for Non-Compliance
  • Penalty equal to the amount of cash received without PAN.
• MocDoc’s PAN Validation Feature
  • Automatically prompts for PAN entry during high-value cash transactions.
  • Ensures error-free and compliant billing processes.
• Financial Transparency
  • Mandatory PAN collection helps authorities track large cash flows.