To put a check and curb the flow of black money in India, the government shall very soon make it mandatory for the individuals to present their PAN card details for every cash transaction which is beyond a particular threshold. As per the Finance Minister Arun Jaitley, the government of India is at very advanced stage of considering the needs of furnishing the details of Pan Card for Cash Transactions that cross a certain limit. He also said that the regime of monitoring the income tax department is now strengthened and its potential to have access to information while also apply for analytical tools driven by technology shall expose to evasion. Jaitley also highlighted on the Importance of Pan Card.
Purchases above 1 Lakh? Present PAN Card!
Its potential to check large cash withdrawal or any large cash transaction that enters the system is now being improved and strengthens. GST regime shall be introduced soon and it will be considered landmark step in this particular direction. Eventually for products like gold where the primary purchase by exporter is post the payment of custom duty, the eventual transaction which is generally in cash can be located easily.
In budget of 2015-16, the finance minister has put forth of making quotient of PAN – Pan Card for Cash Transactions of purchases and sales beyond 1 Lakh Rupees. The third party reporting bodies shall be required to provide information about the foreign currency sales as well as cross border transactions. Resultantly the government has received different representations from varied persons that include – industry associations, MLAs and MPs amongst the other proposed quoting of Permanent Account Number for purchase or sale which is beyond 1 lakh Rupees.
Laying emphasis that bulk black money is till now in India, the finance minister said that there is no need to modify the national attitude. With this plastic money would become norm and less people would use cash and there would be no Importance of Pan Card.