Please enlighten me by telling monetary limits of seeking PAN and mandatorily deducting TDS/TCS for costumers paying the cash for AY 2017-18.I am in the business of tour operating. I book flight tickets as well as whole tour package including hotels and all for costumers. Please specify section which relates to the query. Thanks in advance
There is no section in income tax where you need to record PAN of your customers, but it's always advisable to record PAN if you receive cash above ₹50000. You dont have to deduct any TDS as you are collecting income from them and there is no TCS provision on such transaction.
Just don't accept cash above ₹2 lakh from a person in cash as per section 269ST.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
- Under Income tax and for AY 2017-18, you can only receive cash upto Rs.2 lacs against a single transaction or chain of events comprising one transaction. Section 269ST.
Hello,
Quoting of PAN is mandatory in following cases related to your business,
1. Payment in cash of an amount exceeding Rs 50,000 to a hotel or restaurant against the bill at any one time.
2. Payment in cash of an amount exceeding Rs 50,000 in connection with travel to any foreign country or payment for the purchase of any foreign currency at any one time(including fare, payment to a travel agent).
3. Purchase/ sale of any goods or services exceeding Rs.2 lakh per transaction.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Hi,
Rules 114B to 114E of Income Tax Rules of 1962 mandates the quoting of pan for certain transaction. The below one is relevant for you:
"cash in connection with the foreign travel or purchase of foreign currency of an amount exceeding Rs.50,000/- at any one time (including fare, payment to travel agent"
Further, as per 269ST, you cant cant collect cash from a person in excess of 2 lacs for a single transaction or event or in a single day for multiple transactions
Dear Sir,
Hope you are doing well !!
-Accepting cash worth Rs 2 lakh or more in aggregate from a single person in a day or for one or more transactions relating to one event or occasion will lead to violation of cash transaction law- Refer section 269ST.
-list of transactions in which quoting of PAN is mandatory by every person- Refer rule 114B
