Rule 114B of Income Tax Rules
( Rule 114B of Income Tax -Amended vide Notification G.S.R. 1068(E) Dated 15.11.2016 and Notification No G.S.R. 14(E) Dated 06.01.2017 and Notifcation G.S.R. 728(E). [ 88/2023 Dated 10.10.2023 )
1[Transactions in relation to which permanent account number is to be quoted in all documents for the purpose of clause (c) of sub-section (5) of section 139A.
114B. Every person shall quote his permanent account number in all documents pertaining to the transactions specified in the Table below, namely:—
| Sl.No. | Nature of transaction | Value of transaction |
| (1) | (2) | (3) |
| 1. | Sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988) which requires registration by a registering authority under Chapter IV of that Act, other than two wheeled vehicles. | All such transactions. |
| 2. | Opening an account [other than a time-deposit referred to at Sl. No.12 and a Basic Savings Bank Deposit Account] with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act). | All such transactions. |
| 3. | Making an application to any banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card. | All such transactions. |
| 4. | Opening of a demat account with a depository, participant, custodian of securities or any other person registered under sub-section (1A) of section 12 of the Securities and Exchange Board of India Act, 1992 (15 of 1992). | All such transactions. |
| 5. | Payment to a hotel or restaurant against a bill or bills at any one time. | Payment in cash of an amount exceeding fifty thousand rupees. |
| 6. | Payment in connection with travel to any foreign country or payment for purchase of any foreign currency at any one time. | Payment in cash of an amount exceeding fifty thousand rupees. |
| 7. | Payment to a Mutual Fund for purchase of its units. | Amount exceeding fifty thousand rupees. |
| 8. | Payment to a company or an institution for acquiring debentures or bonds issued by it. | Amount exceeding fifty thousand rupees. |
| 9. | Payment to the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934) for acquiring bonds issued by it. | Amount exceeding fifty thousand rupees. |
| 10. | Deposit with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act). [w.e.f 15.11.2016 deposit with i) Deposit with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act). ii) Post Office
| Deposits in cash exceeding fifty thousand rupees during any one day. Cash Deposit i) exceeding fifty thousand rupees during any one day or ii) Aggregating to more than two lakh fifty thousand rupees during the period 09th November 2016] to 30th December 2016 |
| 11. | Purchase of bank drafts or pay orders or banker’s cheques from a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act). | Payment in cash for an amount exceeding fifty thousand rupees during any one day. |
| 12. | A time deposit with,— (i) a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); (ii) a Post Office; (iii) a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or (iv) a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. | Amount exceeding fifty thousand rupees or aggregating to more than five lakh rupees during a financial year. |
| 13. | Payment for one or more pre-paid payment instruments, as defined in the policy guidelines for issuance and operation of pre-paid payment instruments issued by Reserve Bank of India under section 18 of the Payment and Settlement Systems Act, 2007 (51 of 2007), to a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution. | Payment in cash or by way of a bank draft or pay order or banker’s cheque of an amount aggregating to more than fifty thousand rupees in a financial year. |
| 14. | Payment as life insurance premium to an insurer as defined in clause (9) of section 2 of the Insurance Act, 1938 (4 of 1938). | Amount aggregating to more than fifty thousand rupees in a financial year. |
| 15. | A contract for sale or purchase of securities (other than shares) as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956). | Amount exceeding one lakh rupees per transaction. |
| 16. | Sale or purchase, by any person, of shares of a company not listed in a recognised stock exchange. | Amount exceeding one lakh rupees per transaction. |
| 17. | Sale or purchase of any immovable property. | Amount exceeding ten lakh rupees or valued by stamp valuation authority referred to in section 50C of the Act at an amount exceeding ten lakh rupees. |
| 18. | Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table, if any. | Amount exceeding two lakh rupees per transaction: |
Provided that where a person, entering into any transaction referred to in this rule, is a minor and who does not have any income chargeable to income-tax, he shall quote the permanent account number of his father or mother or guardian, as the case may be, in the document pertaining to the said transaction:
5 [“Provided further that any person, not being a company or a firm] who does not have a permanent account number and who enters into any transaction specified in this rule, he shall make a declaration in Form No.60 giving therein the particulars of such transaction 4 [ either in paper form or electronically under the electronic verification code in accordance with the procedures, data structures, and standards specified by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) ]:
6[“Provided also that a foreign company who,––
(i) does not have any income chargeable to tax in India; and
(ii) does not have a permanent account number,
and enters into any transaction referred to at Sl. No. 2 or 12 of the Table, in an IFSC banking unit, shall make a declaration in Form No. 60:”;
Provided also that the provisions of this rule shall not apply to the following class or classes of persons, namely:—
| (i) | the Central Government, the State Governments and the Consular Offices; | |
| (ii) | the non-residents referred to in clause (30) of section 2 of the Act in respect of the transactions other than a transaction referred to at Sl. No. 1 or 2 or 4 or 7 or 8 or 10 or 12 or 14 or 15 or 16 or 17 of the Table. |
2[“Provided also that a person who has an account (other than a time deposit referred to at S.No.12 of the Table and a Basic Saving Bank Deposit Account) maintained with a banking company or a cooperative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) and has not quoted his permanent account number or furnished Form No. 60 , as the case may be, at the time of opening of such account or subsequently, he shall furnish his permanent account number or Form No. 60 , as the case may be, to the person specified in clause (c) of sub-rule (1) of rule 114C on or before the 3[30th day of June], 2017.] .”
Explanation.—For the purposes of this rule,—
| 8[(1) | “IFSC banking unit” means a financial institution defined under clause (c) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), that is licensed or permitted by the International Financial Services Centres Authority to undertake permissible activities under the International Financial Services Centres Authority (Banking) Regulations, 2020;”;] | |
| 7(1A) | “payment in connection with travel” includes payment towards fare, or to a travel agent or a tour operator, or to an authorised person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999); | |
| (2) | “travel agent or tour operator” includes a person who makes arrangements for air, surface or maritime travel or provides services relating to accommodation, tours, entertainment, passport, visa, foreign exchange, travel related insurance or other travel related services either severally or in package; | |
| (3) | “time deposit” means any deposit which is repayable on the expiry of a fixed period.] |
Notes on Rule 114B Income Tax :-
8. Inserted by Income tax (Twenty-fourth Amendment) Rules, 2023 w.e.f 10.10.2023
7. in the Explanation, clause (1) is re-numbered as (1A) by Income tax (Twenty-fourth Amendment) Rules, 2023 w.e.f 10.10.2023
6. Inserted by by Income tax (Twenty-fourth Amendment) Rules, 2023 w.e.f 10.10.2023
5.substituted for “Provided further that any person” by Income tax (Twenty-fourth Amendment) Rules, 2023 w.e.f 10.10.2023
4 Inserted by the Income-tax (Fourteenth Amendment) Rules, 2017, w.e.f. 9-6-2017.
3 Substituted for “28th day of February” by the Income-tax (Seventh Amendment) Rules, 2017, w.r.e.f. 1-3-2017.
2 proviso inserted by Notification No G.S.R. 14(E) Dated 06.01.2017 ]
1 Rule 114B substituted by the Income-tax (Twenty Second Amendment) Rules, 2015, w.e.f. 1-1-2016. Prior to its substitution, said Rule; as amended by the Income-tax (Sixteenth Amendment) Rules, 1998, w.e.f. 1-11-1998; the Income-tax (Twenty Fourth Amendment) Rules, 1998, w.e.f. 1-11-1998; the Income-tax (Fourth Amendment) Rules, 1999, w.e.f. 27-1-1999; the Income-tax (Eighth Amendment) Rules, 2002, w.e.f. 19-6-2002; the Income-tax (Seventeenth Amendment) Rules, 2004, w.e.f. 1-12-2004 and the Income-tax (Fifth Amendment) Rules, 2011, w.e.f. 1-7-2011; read as under :
“114B. All documents pertaining to the transactions in relation to which permanent account number to be quoted for the purpose of clause (c) of sub-section (5) of section 139A.— Every person shall quote his permanent account number in all documents pertaining to the transactions specified below, namely :—
| (a) | sale or purchase of any immovable property valued at five lakh rupees or more; | |
| (b) | sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988(59 of 1988), which requires registration by a registering authority under Chapter IV of that Act : | |
| Provided that for the purposes of this clause, the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle; | ||
| (c) | a time deposit, exceeding fifty thousand rupees, with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); | |
| (d) | a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank; | |
| (e) | a contract of a value exceeding one akh rupees for sale or purchase of securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); | |
| (f) | opening an account not being a time-deposit referred to in clause (c)] with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); | |
| (g) | making an application for installation of a telephone connection (including a cellular telephone connection); | |
| (h) | payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ; | |
| (i) | payment in cash for purchase of bank drafts or pay orders or banker’s cheques from a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) for an amount aggregating fifty thousand rupees or more during any one day; | |
| (j) | deposit in cash aggregating fifty thousand rupees or more, with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) during any one day; | |
| (k) | payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time. | |
| Explanation.—For the purposes of this clause,— |
| (a) | “payment in cash in connection with travel” includes payment in cash towards fare, or to a travel agent or a tour operator, or to an authorized person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999), or for the purchase of foreign currency; | |
| (b) | the expression “travel to any foreign country” does not include travel to the neighbouring countries or to such places of pilgrimage as may be specified by the Board underExplanation 3 of sub-section (1) of section 139; |
| (l) | making an application to any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card; | |
| (m) | payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units; | |
| (n) | payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;” |
Notes :-
1. Rule 114B substituted by the Income-tax (Twenty Second Amendment) Rules, 2015, w.e.f. 1-1-2016. Prior to its substitution, said Rule; as amended by the Income-tax (Sixteenth Amendment) Rules, 1998, w.e.f. 1-11-1998; the Income-tax (Twenty Fourth Amendment) Rules, 1998, w.e.f. 1-11-1998; the Income-tax (Fourth Amendment) Rules, 1999, w.e.f. 27-1-1999; the Income-tax (Eighth Amendment) Rules, 2002, w.e.f. 19-6-2002; the Income-tax (Seventeenth Amendment) Rules, 2004, w.e.f. 1-12-2004 and the Income-tax (Fifth Amendment) Rules, 2011, w.e.f. 1-7-2011; read as under :
“114B. All documents pertaining to the transactions in relation to which permanent account number to be quoted for the purpose of clause (c) of sub-section (5) of section 139A.— Every person shall quote his permanent account number in all documents pertaining to the transactions specified below, namely :—
| (a) | sale or purchase of any immovable property valued at five lakh rupees or more; | |
| (b) | sale or purchase of a motor vehicle or vehicle, as defined in clause (28) of section 2 of the Motor Vehicles Act, 1988(59 of 1988), which requires registration by a registering authority under Chapter IV of that Act : | |
| Provided that for the purposes of this clause, the sale or purchase of a motor vehicle or vehicle does not include two wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle; | ||
| (c) | a time deposit, exceeding fifty thousand rupees, with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); | |
| (d) | a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank; | |
| (e) | a contract of a value exceeding one akh rupees for sale or purchase of securities as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956); | |
| (f) | opening an account not being a time-deposit referred to in clause (c)] with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); | |
| (g) | making an application for installation of a telephone connection (including a cellular telephone connection); | |
| (h) | payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ; | |
| (i) | payment in cash for purchase of bank drafts or pay orders or banker’s cheques from a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) for an amount aggregating fifty thousand rupees or more during any one day; | |
| (j) | deposit in cash aggregating fifty thousand rupees or more, with a banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) during any one day; | |
| (k) | payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any one time. | |
| Explanation.—For the purposes of this clause,— |
| (a) | “payment in cash in connection with travel” includes payment in cash towards fare, or to a travel agent or a tour operator, or to an authorized person as defined in clause (c) of section 2 of the Foreign Exchange Management Act, 1999 (42 of 1999), or for the purchase of foreign currency; | |
| (b) | the expression “travel to any foreign country” does not include travel to the neighbouring countries or to such places of pilgrimage as may be specified by the Board underExplanation 3 of sub-section (1) of section 139; |
| (l) | making an application to any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or to any other company or institution, for issue of a credit or debit card; | |
| (m) | payment of an amount of fifty thousand rupees or more to a Mutual Fund for purchase of its units; | |
| (n) | payment of an amount of fifty thousand rupees or more to a company for acquiring shares issued by it;” |