Rule 114B of the Income Tax Rules, 1962 mandates the furnishing of a Permanent Account Number (PAN) for certain prescribed financial transactions. If an individual doesn't have a PAN, they must submit a declaration in Form No. 60 to the relevant entity, such as a bank.
In essence, Rule 114B aims to track high-value financial transactions to curb tax evasion and increase transparency in the financial system. It ensures that these transactions are linked to a specific individual or entity, enabling the Income Tax Department to monitor and verify financial activities more effectively.
