What is a Pan Card?
PAN is a 10-digit alphanumeric number, assigned in the form of a laminated card by the Income Tax Department and is necessary for filing "return of income, sale or purchase of any immovable property beyond a certain amount, and sale or purchase of a motor vehicle," etc.
Government to 'expeditiously' provide PAN card to all
- Jan Dhan Yojana's success has propelled Central government's plans to start a mega programme to expeditiously provide Permanent Account Number (PAN) card to all.
- Government said that it was planning to make PAN card compulsory for transactions higher than ₹1 lakh but was worried that majority rural population didn't possess it.
- It said online facility for the issuance of PAN cards will soon begin.
What was the Jan Dhan Yojana?
Pradhan Mantri Jan-Dhan Yojana is a National Mission for Financial Inclusion to guarantee access to financial services, such as "Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension". Under this scheme, 19.02 crore bank accounts were opened, and the amount deposited was ₹25913.56 crores.
SIT gives its recommendations to curb black money
- The Special Investigation Team in its recommendations to SC gave several stringent steps to curb black money generation.
- SIT's main contention was that quoting of PAN should be made compulsory for "all sales and purchase of goods and services where the payment exceeds ₹1 lakh".
- It also suggested to check black money in the education sector going to charities and religious institutions.
PAN-card may become compulsory for transactions beyond a limit
- The Centre disclosed that it was considering making it "mandatory for people to furnish PAN Card details for cash transactions" beyond a certain limit to control the production of domestic black money.
- This news was disclosed by the Finance Minister Arun Jaitley through a Facebook post.
- He said the government was trying to make plastic money the norm and cash an exception.
Government makes PAN card more efficient
- The government announced that it was launching a "PAN activity monitoring and analysis software tool".
- This tool will help the IT department check the transactions history of any person and will aid in the efficient tracking of the black money trail.
- The digital and smart platform is being called the Income Tax Business Application-Permanent Account Number (ITBA-PAN) and is right now in testing stage.
PAN card compulsory for opening bank accounts
- The government announced the plan of making PAN card mandatory for opening all bank accounts from 1 January 2016.
- This step is aimed towards checking domestic black money.
- PAN card would be needed for buying gold or jewellery worth ₹2 lakhs and above or for paying a ₹50,000 bill at any restaurant.
- The government said this will also reduce bank accounts with forged details.
Mandatory PAN card rule upsets Jewellers Associations
- Jewellers across the country have said that they would launch 'protests' against the government's ruling to make PAN cards mandatory for transactions of ₹2 lakh and over.
- The Jewellers' associations met in Mumbai to take up this issue.
- They said that due to this move, their business had suffered a 25-30% slump.
- They asked the Finance Ministry to revise the limit to ₹10 lakh.