Govt plans to block PAN details of tax defaulters; denies move to double tax base

news
20 June 2016

The income tax department is considering blocking PAN?cards of tax defaulters and evaders. Besides, the violators will not be eligible to receive government subsidy on facilities like cooking gas.

The finance ministry, however, refuted news reports that Prime Minister Narendra Modi has set a target for doubling the income tax base to 100 million assessees at the Rajasva Gyan Sangam, a two-day retreat for revenue officials.

The issue of tackling non-compliance was discussed during last week's Revenue Gyan Sangam where Prime Minister Narendra Modi asked tax officials to broaden the country's tax base.

The moves are aimed at checking the generation of black money and routing of illegal income to safe havens, an official said.

According to the action plan, the I-T department will be alerted by the Credit Information Bureau of India and bank each time a tax defaulter uses his PAN?card for any bank transaction or purchase using credit card.

The authorities are also planning to share blocked PAN card information with registration offices to debar the defaulter from buying immovable property.

Starting this year, furnishing PAN details is mandatory for cash transactions made for hotel bills or foreign travel exceeding Rs50,000. It is also a must for all transactions, including the purchase of jewellery, above Rs2 lakh in cash or through a card.

Providing PAN details is also mandatory on the purchase of immovable property of over Rs 10 lakh and term deposits exceeding Rs 50,000 at one go or Rs 5 lakh in a year with banks, post offices and non-banking financial companies. It is also a must for opening bank accounts, except those that come under the Pradhan Mantri Jan Dhan Yojana scheme.

According to official estimates, only 3 per cent of the country's 1.2 billion people pay taxes. Tax revenue amounts to only 17 per cent of GDP as against the 25 per cent in the US and 33 per cent in the UK.





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