PAN soon to be mandatory for cash transactions above Rs 2 lakh

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 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.