Skip to main content

Quoting PAN for cash transactions over threshold may be mandatory Jaitley

By
The government might soon make it mandatory to furnish a permanent account number ( PAN) for cash transactions over a certain limit, Finance Minister Arun Jaitley reiterated on Sunday, in a Facebook post.
The bulk of Indians’ black money was within the country, he said. There was aneed to change the national attitude, so that plastic currency becomes the norm and cash an exception. The government was working with various authorities to incentivise this change.
The government has already said it is targeting undisclosed money abroad, with stringent action against those who’d chosen not to take advantage of the three- month compliance window in this regard, that ended on September 30.
The minister said the monitoring regime of the income tax department had been strengthened and its capacity to access information and apply technology- driven analytical tools to expose evasion had been enhanced.
In the 2015- 16 Budget, Jaitley had proposed making PAN details mandatory for all sale and purchase over Rs.1 lakh. “ The ability to detect large cash withdrawals or large cash transactions which enter the system is being strengthened. A GST (goods and services tax) regime, once introduced, will also be a landmark step in this direction,” he’d said.
For commodities such as gold where initial purchase by the exporter is after the payment of customs duty, subsequent transactions which are mostly in cash could easily be detected, he’d noted. “ 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,” Jaitley had said in his Budget speech.
The government had then got representations from a wide section of society, including MPs, MLAs, trade and industry associations, among others, against the proposed mandatory quoting of PAN for sale or purchase in excess of Rs.1 lakh.
The minister has said the government’s policy is “ rationalisation of tax structures, taxing at reasonable rates, placing more money in the hands of small earners, encouraging and promoting the use of plastic money by all sections of society and creating deterrence against those who continue to use unaccounted money.” He said Switzerland had agreed to provide India with proof relating to several HSBC accounts where Delhi can give some evidence over and above the leaked or stolen data. They’d earlier ruled out cooperation with India on the ground that the data in question was stolen.
Business Standard, New Delhi, 5th Oct. 2015

Comments

Post a Comment

Popular posts from this blog

Household debt up, but India still lags emerging-market economies: RBI

By
  Although household debt in India is rising, driven by increased borrowing from the financial sector, it remains lower than in other emerging-market economies (EMEs), the Reserve Bank of India (RBI) said in its Financial Stability Report. It added that non-housing retail loans, largely taken for consumption, accounted for 55 per cent of total household debt.As of December 2024, India’s household debt-to-gross domestic product ratio stood at 41.9 per cent. “...Non-housing retail loans, which are mostly used for consumption purposes, formed 54.9 per cent of total household debt as of March 2025 and 25.7 per cent of disposable income as of March 2024. Moreover, the share of these loans has been growing consistently over the years, and their growth has outpaced that of both housing loans and agriculture and business loans,” the RBI said in its report.Housing loans, by contrast, made up 29 per cent of household debt, and their growth has remained steady. However, disaggregated data sho...
Post a Comment
Read more

External spillovers likely to hit India's financial system: RBI report

By
  While India’s growth remains insulated from global headwinds mainly due to buoyant domestic demand, the domestic financial system could, however, be impacted by external spillovers, the Reserve Bank of India (RBI) said in its half yearly Financial Stability Report published on Monday.Furthermore, the rising global trade disputes and intensifying geopolitical hostilities could negatively impact the domestic growth outlook and reduce the demand for bank credit, which has decelerated sharply. “Moreover, it could also lead to increased risk aversion among investors and further corrections in domestic equity markets, which despite the recent correction, remain at the high end of their historical range,” the report said.It noted that there is some build-up of stress, primarily in financial markets, on account of global spillovers, which is reflected in the marginal rise in the financial system stress indicator, an indicator of the stress level in the financial system, compared to its p...
Post a Comment
Read more

Healthy balance sheets augur well for economy: RBI Governor Sanjay Malhotra

By
  Large tariffs by the United States administration and elevated geopolitical risk have increased near-term global financial stability risks, and along with weather events pose downside risks to domestic growth, Reserve Bank of India(RBI) Governor Sanjay Malhotra said in the foreword to the Financial Stability Report released today.Noting that domestic growth momentum is buoyed by strong domestic drivers, sound macroeconomic fundamentals and prudent policies, Malhotra said: “External spillovers and weather-related events could pose downside risks to growth.”On the other hand, he said the outlook for inflation is benign, and there is greater confidence in the durable alignment of inflation with the Reserve Bank’s target.Commenting that the structural shifts reshaping the global economy are making policy intervention challenging, the Governor emphasised the need for central banks and financial sector regulators to remain vigilant, prudent and agile in safeguarding their economies and...
Post a Comment
Read more