Budget 2017: PAN number for lower cash transactions?
- At present PAN number is required for any cash transaction over ₹50,000.
- The government might lower this limit to ₹30,000.
- Aadhar card might be made mandatory for those without PAN card.
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The budget 2017 is expected to have quite a number of surprises for the nation including changes in salary slab, special incentives for farmers and so on and so forth.
According to the latest report in the Economic Times, the Modi government can also reduce the threshold of the cash transaction that needs PAN card. This will be done to maintain the momentum of the cashless economy by limiting cash transactions and restricting cash withdrawals.
At present, PAN number is required for making any transaction valuing ₹50,000 and above which may be reduced to ₹30,000 to ensure that more cash transactions fall within the formal economy. Quoting a source ET also mentioned that for merchant transactions also the threshold might be reduced.
Apart from this, the central government can also make an announcement imposing cash-handling charges for making cash payments over a certain limit. As per the source, the limit can be on cash transactions over ₹100000. For any cash transaction over this limit will have an additional cash-handling charge.
For those who do not have a PAN card, Aadhar card might be made mandatory by the government. These measures if imposed will bring down cash transactions and pave the way for the cashless formal economy. Also, these measures will help to keep a check on cash transactions even after removal of the cash withdrawal limits imposed after demonetisation.
