Govt to soon make PAN must for cash spending beyond a limit

New Delhi: To check generation of domestic black money, the government will soon make it mandatory to furnish PAN card details for cash transactions beyond a certain threshold, finance minister Arun Jaitley said on Sunday.

“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 said in a Facebook post. He said 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.

“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,” Jaitley said.

In 2015-16 Budget, the finance minister had proposed making quoting of Permanent Account Number (PAN) mandatory for all sale and purchase of over Rs1 lakh. “Quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs1 lakh. The third party reporting entities would be required to furnish information about foreign currency sales and cross border transactions,” Jaitley had said.