Union finance minister Arun Jaitley said on Sunday, that the government will soon make it mandatory to furnish PAN card details for cash transactions beyond a certain threshold.
“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.
Finance Minister Arun Jaitley said the monitoring regime of Income Tax has been strengthened and its capacity to access information and apply technology driven analytical tools to expose evasion has been enhanced, said in a Facebook post titled ‘The NDA Government’s campaign against black money’.
In Budget 2015, the finance minister had proposed making quoting of PAN mandatory for all sale and purchase of over Rs 1 lakh.
Stressing that bulk of black money is still within India, Jaitley said, “There is a need to change the national attitude so that plastic currency becomes the norm and cash an exception.”
“Its ability to detect large cash withdrawals, or large cash transactions which enter the system, is being strengthened. Goods and Service Tax (GST) regime once introduced will also be a landmark step in this direction.
The finance minister said, to make India a more investment friendly destination, the government in the 2015 Budget announced that the rate of corporate tax would be brought down to 25% over the next four years and most exemptions, other than those which incentivise savings, would eventually be phased out.
He also described as “ill conceived” the comparison between the assessed income of Rs 6,500 crore in HSBC and Rs 3,770 crore declared during the compliance window saying these should not be treated as income under amnesty schemes.
He said 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 one-time compliance window by 638 persons totalled Rs 3,770 crore.
Arun Jaitley stated that, since Aadhaar uses fingerprints and iris scans, its cross-tabbing with PAN should help weed out duplicate PANs and help the tax department in its anti-tax evasion drive.
He also said that the automatic exchange of information with various countries would also ensure that those with illegal assets abroad who have failed to make declaration would now stand the risk of information relating to them eventually reaching tax authorities.