PAN soon to be mandatory for cash transactions above Rs 2 lakh | business | Hindustan Times
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PAN soon to be mandatory for cash transactions above Rs 2 lakh

In a bid to check generation of domestic black money, the government will soon issue a notification making PAN mandatory for all cash transactions beyond Rs 2 lakh, finance minister Arun Jaitley said on Tuesday.

business Updated: Dec 15, 2015 20:26 IST
Jaitley in his budget speech 2015-16 had proposed mandatory PAN quoting for any purchase or sale exceeding the value of Rs 1 lakh.
Jaitley in his budget speech 2015-16 had proposed mandatory PAN quoting for any purchase or sale exceeding the value of Rs 1 lakh.(HT Photo)

In a bid to check generation of domestic black money, the government will soon issue a notification making PAN mandatory for all cash transactions beyond Rs 2 lakh, finance minister Arun Jaitley said on Tuesday.

“An issue is being raised with regard to black money.... Very shortly we will be placing the notification that if you deal in cash of more than Rs 2 lakh, a PAN number would be necessary,” he said replying to a debate in the Lok Sabha on Supplementary Demands for Grants.

This, he said, is a move to check domestic black money.

Jaitley in his budget speech 2015-16 had proposed mandatory PAN quoting for any purchase or sale exceeding the value of Rs 1 lakh.

In his Budget speech, Jaitley had said: “Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh. The third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions.

Thereafter, the government received representations from various persons, including MPs, MLAs, trade and industry associations among others, against the proposed mandatory quoting.

Now, Jaitley said the threshold will be Rs 2 lakh for cash purchase or sale.