The move, Jaitley said, will help check domestic black money. — Thinkstock photo
New Delhi, December 15
In a bid to check generation of
domestic black money, the government will soon issue a notification making
quoting of PAN mandatory for all cash transactions beyond Rs 2 lakh, Finance
Minister Arun Jaitley said today.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
"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 debate in the Lok Sabha on Supplementary
Demands for Grants.
This, he said, is a move to check
domestic black money.
Jaitley in his Budget Speech 2015-16
had proposed mandatory PAN quoting for any purchase or sale exceeding the value
of Rs 1 lakh.
In 2015-16 Budget, the Finance
Minister had proposed making quoting of Permanent Account Number (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 among others, against the proposed mandatory quoting of PAN for
sale or purchase in excess of Rs 1 lakh.
Now, Jaitley said the threshold will
be Rs 2 lakh for cash purchase or sale.
In his
Budget speech, 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," Jaitley had said. — PTI
