Govt to make PAN must for cash spending beyond a limit: Jaitley
The proposal to declare PAN details in case of cash transactions beyond a certain limit is at an advanced stage of consideration by the government, finance minister Arun Jaitley on Sunday said in a Facebook post titled ‘The NDA Government’s campaign against black money’.business Updated: Oct 05, 2015 08:46 IST
The proposal to declare PAN details in case of cash transactions beyond a certain limit is at an advanced stage of consideration by the government, finance minister Arun Jaitley on Sunday said in a Facebook post titled ‘The NDA Government’s campaign against black money’.
“The government is at an advanced stage in considering the requirement of furnishing PAN card details if cash transactions beyond a certain limit are undertaken,” Jaitley wrote.
HT had reported in January that the government was actively considering a proposal to make furnishing of permanent account number (PAN) mandatory in case of high-value purchases.
In Budget 2015, the finance minister had proposed making quoting of PAN mandatory for all sale and purchase of over Rs 1 lakh.
The monitoring regime of the income-tax department has been strengthened, and its capacity to access information and apply technology-driven analytical tools to expose evasion has been enhanced, the finance minister said in his Facebook post. “Its ability to detect large cash withdrawals, or large cash transactions which enter the system, is being strengthened. GST regime once introduced will also be a landmark step in this direction. Thus for commodities like gold where the initial purchase by the exporter is after the payment of custom duty, the subsequent transactions which are mostly in cash, can easily be found out.”
Asserting that the opening of payment gateways, emergence of internet banking, recent licences issued to payment banks and the increasing presence of e-commerce companies will prompt more use of banking transactions and plastic money, Jaitley said: “The bulk of black money is still within India. We need a change in national attitude where plastic currency becomes the norm and cash an exception.”
He clarified that the previously assessed Rs 6,500 crore pertained to account holders in LGT Bank of Liechtenstein and HSBC Bank, Geneva, while declarations under the just-concluded compliance window for declaring illegal assets held abroad under the black money law by 638 people totalled Rs 3,770 crore.
Hence, comparing the earlier tax amnesty schemes with the compliance window was ‘ill-conceived’, he said: “The assessed income of Rs 6,500 crore in HSBC and Rs 3,770 crore declared income during the compliance window should not be treated as income under any immunity scheme... The campaign against domestic black money has to be separately dealt with for which the government is independently taking steps.”
Assuring those who had declared their undisclosed assets abroad within the compliance window offered by the government, he said they “can now sleep well”, while those who did not avail of the window will be subjected to penal provisions.