The change in the Income Tax Act makes the directorate liable to inform tax payers about the new rules and regulations, including the explanation of section 285BA as well as the rules 114B, 114C, 114D and 114E.
SS Rana, Director of the Income Tax (Intelligence and Criminal Investigation) stated that it is mandatory for motor vehicle and jewellery dealers to quote PAN of a customer purchasing a commodity, irrespective of the amount in the transactions. Violating the rules will make dealers liable to face a strong penalty.
“The rule 114B of the IT rule says PAN card is mandatory for transactions involving motor vehicles, jewellery, restaurants, foreign currency transfer. If any person does not possess the PAN card, then he needs to fill Form 60 to declare his financial statement with valid address proof. There are 27 address proof documents, which are mentioned in the rule book, and can be furnished as valid documents,” Rana said on Monday in a press conference at Aayakar Bhavan here.
“Quoting the correct PAN is necessary, which is clearly written in rule 114C. Motor vehicle dealers will have to upload the information of Form 60 on the website of income tax department. But the dealers need to register on the website before filling the forms there. It will take just five minutes,” said Priyabrata Pramanik, additional director of Income Tax (Intelligence and Criminal Investigation).
Pramanik further stated that information related to any cash transaction exceeding Rs 2 lakh in the current financial year with any person has to be reported in Form 61A online in tax audit cases. This rule will be applicable to all purchases, including motor vehicles.
“All this information needs to sent to the income tax department by December 31. These new measures are being taken after the Centre’s decision to wipe out black money from the market,” Rana added.