Transactions for which PAN is required to be quoted under Rule 114B

The following transactions require the quoting of PAN under Rule 114B of the Income Tax Rules, 1962:

• Sale or purchase of a motor vehicle or vehicle other than a two-wheeler, irrespective of the amount involved.
• Opening of a bank account other than a time deposit account, basic savings bank deposit account, or a recurring deposit account, irrespective of the amount involved.
• Application for a debit or credit card, irrespective of the amount involved.
• Opening of a demat account, irrespective of the amount involved.
• Payment to a hotel or restaurant at any one time in excess of Rs. 50,000, if the assessee is required to get his/her accounts audited under section 44AB of the Income Tax Act, 1961.
• Payment for foreign travel or foreign currency at one time in excess of Rs. 50,000, if the assessee is required to get his/her accounts audited under section 44AB of the Income Tax Act, 1961.
• Payment to a mutual fund for the purchase of units, in excess of Rs. 50,000.
• Payment to a company or institution for the purchase of debentures or bonds issued by it, in excess of Rs. 50,000.
• Payment to the Reserve Bank of India for the purchase of bonds issued by it, in excess of Rs. 50,000.
• Cash deposit with a bank or post office in any one day in excess of Rs. 50,000.
• Bank draft, pay order, or banker's cheque issued in any one day in excess of Rs. 50,000.
• Time deposit with a bank, post office, Nidhi company, or non-banking financial company (NBFC), in excess of Rs. 50,000 per transaction or Rs. 5 lakh in aggregate during the financial year.
• Payment for one or more prepaid payment instruments (PPIs) such as smart cards, magnetic stripe cards, internet accounts, online wallets, mobile wallets, paper vouchers, mass transit systems, and others, aggregating to more than Rs. 50,000 in a financial year.
• Life insurance premium aggregating to more than Rs. 50,000 in a financial year.
• Sale or purchase of securities other than shares, per transaction, in excess of Rs. 1 lakh.
• Sale or purchase of unlisted shares, per transaction, in excess of Rs. 1 lakh, subject to verification by the company.
• Sale or purchase of immovable property, in excess of Rs. 10 lakh, either in terms of the transaction value or the fair market value (FMV).
• Sale or purchase of goods or services, per transaction, in excess of Rs. 2 lakh, if the assessee is required to get his/her accounts audited under section 44AB of the Income Tax Act, 1961.

Rule 114B of the Income Tax Rules, 1962 is not applicable to the following persons or entities:

• Central Government
• State Government
• Consular Offices
• Non-residents, in respect of the following transactions:
  • Application for debit and credit cards
  • Payment to a hotel or restaurant against a bill
  • Payment for foreign travel or foreign currency
  • Payment to the Reserve Bank of India for acquiring bonds
  • Purchase of a demand draft, pay order, or banker's cheque
  • Payment for prepaid instruments
  • Sale or purchase of goods or services exceeding Rs. 2 lakh

The rationale behind this is that these entities are not considered to be high-risk for tax evasion or money laundering. Additionally, the government may have entered into agreements with these entities that exempt them from the requirement to quote PAN.

It is important to note that this is not an exhaustive list and the government may add or remove transactions from the list from time to time. It is therefore important to check the latest rules and regulations before entering into any transaction.