Skip to main content

PAN must forover Rs. 2 lakh transactions

By
To curtail domestic flow of unaccounted money, the finance ministry on Tuesday announced mandatory furnishing of permanent account number ( PAN) for all transactions over Rs.2 lakh through all payment modes, with effect from January 1, 2016. Quoting PAN will also be mandatory for cash payments made to settle hotel bills or for buying foreign travel tickets
From Jan 1, PAN mandatory for transactions above Rs.2 lakh
In a bid to curtail domestic black money flow, the finance ministry on Tuesday announced mandatory furnishing of permanent account number ( PAN) for all transactions above Rs.2 lakh through all payment modes with effect from January 1, 2016. This is a relaxation from an proposal to make PAN mandatory for sale and purchase of items above Rs.1 lakh.
“We have received a lot of representations. We will give breathing time to taxpayers,” said revenue secretary Hasmukh Adhia.
Accepting the recommendations of the special investigation team on black money, finance minister Arun Jaitley had in the 2015- 16 Budget proposed to make PAN details mandatory for all sale and purchase of Rs.1 lakh and above. However, it met with resistance from trade and industry associations that argued the lower limit would affect business.
“The government has received numerous representations from various quarters regarding the burden of compliance this proposal will entail. Considering the representations, PAN will be required for transactions of an amount exceeding Rs.2 lakh regardless of the mode of payment,” Central Board of Direct Taxes ( CBDT) said in a statement on Tuesday.
Besides, the ministry rationalised monetary limits for certain transactions requiring mandatory quoting of PAN. The monetary limits for sale or purchase of immovable property has been raised from Rs.5 lakh to Rs.10 lakh, and that for hotel / restaurant bills raised from Rs.25,000 to Rs.50,000. Sale or purchase of shares of an unlisted company has been raised from Rs.50,000 to Rs.1 lakh.
In line with the government’s thrust on financial inclusion, opening of a nofrills bank account such as Jan Dhan will not require PAN. The requirement of PAN applies to opening of all bank accounts including in co- operative banks .
Installation of cellphone and telephone connections will not require quotation of PAN anymore.
In a Facebook post in October, finance minister Arun Jaitley had said that a bulk of black money was still within India, and there was a need to change the national attitude so that plastic currency becomes the norm and cash an exception. “ The government is working with various authorities to incentivise this change,” he had said.
The government had provided athree- month compliance window that ended on September 30 to target black money stashed abroad; it saw declarations worth only Rs. 4,147 crore.
Business Standard, New Delhi, 16th Dec. 2015

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more