PAN may be mandatory for cash transaction above 30,000 after budget
New Delhi: The Union Government is planning to pass a rule during this budget to quote PAN details for making cash transactions above Rs 30,000 as mandatory, a move aimed to bolster cashless economy, digitilisation and to curb black money following the note ban decision, report from a leading media agency said.
Currently, any cash transactions above Rs 50,000 require a person to furnish his PAN card. The government is looking to lower the limit for quoting of the PAN for merchant transactions to Rs 1 lakh from Rs 2 lakh. Besides it may also levy cash handling charges on cash transactions and reduce the number of free ATM withdrawals from currently 8-10 to just 3.
The move is aimed at discourage people from engaging in more cash-based transactions and rely more on digital payment modes since a wide concern keeps growing that with the ease of cash withdrawal coming into effect people would start resorting to more cash usage and thus failing the main aim of demonetsiation.