Finance Minister Arun Jaitely indicated that the government will rely on more use of mandatory PAN card use for higher value transactions. He suggested that the government is thinking about fresh lower thresholds.
At present, transactions above Rs One lakh need PAN card quoting as per the amendment made in budget 2015. The limit was Rs 5 lakh previously. Recording transactions with PAN card quoting will reduce black money generation domestically. Various committees also recommended that making PAN card mandatory will reduce 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 mentioned in a Facebook post.
The present development is in the context of the miserable failure of the Undisclosed Foreign Income and Asset Act (UFIA), to bring back black money from overseas. At the end of the compliance window provision, only 638 persons revealed black money overseas possessing Rs 3770 crores.
Finance Minister has pointed out that bulk of the black money is stored domestic. Similarly, black money is created within the country as well.
Indicating that the people disclosed black money will be safe, he warned when the government obtains tax information under the proposed Automatic exchange of information ( AEOI), the non binding persons will be prosecuted.
“Those who chose to declare between this period would not be prosecuted under the new black money law… These declarants can now sleep well.”