PAN For Financial Transaction: In order to give relief to the people, in the upcoming budget, the government may eliminate the requirement of PAN card for some financial transactions.
Union Budget 2023: In the upcoming budget, the requirement of PAN card can be abolished to provide relief to the people. If the Aadhaar card is already present, then the requirement of PAN in money transactions (PAN Card For Transaction With Aadhaar Card) can be abolished. However, this will be done only for a few financial transactions.
Banks have presented this proposal to the government. Banks say that since the accounts are linked to Aadhaar, there is no need for PAN. An official aware of the matter told that information in this regard has been received and they are being investigated and it can be considered during the budget.
What is the rule regarding PAN card now?
If the PAN card is not given, as per section 206AA of the Income Tax Act, a tax of up to 20 per cent will be levied on the transaction, irrespective of the rate applicable to it. The official said that some lenders have suggested amendment in the Income Tax Act, as some problems are also arising regarding loans from banks.
PAN card will be required
According to a report in Economic Times, the rationale for doing away with the requirement of PAN is that almost all bank accounts are already linked with Aadhaar number (Aadhaar Link With PAN) and under section 139A (5E) of the Income Tax Act. Aadhaar is allowed instead of PAN for some transactions. The report quoted an official as saying that the requirement of PAN card could be done away with for a certain time frame. This means that the requirement of PAN card can be done away with for some transactions.
Why pan card is necessary on transaction
Many problems had come to the fore regarding the transaction of money from the bank. PAN card has been implemented to prevent fraud and tax evasion. If someone does a large amount transaction, then PAN card is required.
Relief for these
Experts believe that if the government takes this decision regarding PAN card, then taxpayers will be benefited. However, some transactions may attract higher tax deductions. Along with this, new bank account holders and people with income below the taxable limit will also be benefited. Significantly, if someone does more than 20 lakh transactions during a year, then he has to show PAN card.
