New Delhi: 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.
“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 quoting of PAN for any purchase or sale exceeding the value of Rs 1 lakh.
In another related development effectiver January 1, Revenue Secretary Shaktikanta Das said that PAN would be mandatory for cash payments over Rs 50,000 made to clear hotel bills or for buying a foreign travel ticket.
Quoting of PAN will also be made mandatory for purchase of immovable property of over Rs 10 lakh and for opening of all bank accounts except those under Pradhan Mantri Jan Dhan Yojana.
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.
However, the threshold will now be Rs 2 lakh for cash purchase or sale.
