New Delhi: In a bid to check generation of domestic black money, the government could soon issue a notification making quoting of Permanent Account Number (PAN) mandatory for all cash transactions beyond Rs 2 lakh, Finance Minister Arun Jaitley said on Tuesday.
"An issue is being raised with regard to black money... Very shortly we will be placing the notification that if you deal in cash of more than Rs 2 lakh, a PAN number would be necessary," he said, replying to a debate in the Lok Sabha on supplementary demands for grants.
This, he said, is a move to check domestic black money.
Also, quoting PAN will be mandatory from January 1 for cash payment made to settle hotels bills or for buying foreign travel tickets of Rs 50,000. The PAN requirement for non-luxury cash transactions will be Rs 2 lakh. However, in a relief to small investors, the requirement of furnishing PAN for making post office deposits of over Rs 50,000 has been dispensed with.
Unveiling the new norms, Revenue Secretary Hasmukh Adhia said purchasing of jewellery or bullion, a major source of blackmoney, quoting of PAN would be required if the sum involved is Rs 2 lakh per transaction. Currently, it is required for transaction of Rs 5 lakh and above.
In 2015-16 Budget, the Finance Minister had proposed making quoting of PAN mandatory for all sale and purchase of over Rs 1 lakh.
Thereafter, the government received representations from various persons, including MPs, MLAs, trade and industry associations, against the proposed mandatory quoting of PAN for sale or purchase in excess of Rs 1 lakh.
Now, Mr Jaitley said the threshold would be Rs 2 lakh for cash purchase or sale.
In his Budget speech, Mr Jaitley had said, "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."
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