- By making PAN compulsory for all financial transaction beyond a thresh hold limit government showed its firmness on curbing black money.
- Though quoting PAN for financial transaction above Rs.1 lakh is stipulated in the last budget but withdrawn at several requests received from political leaders and industrialists.
- But now Finance Minister has clearly expressed that the proposal to make quoting PAN a mandatory is in an advanced stage and will be a highly technical tool to the tax authorities to track all the high value financial dealings in cash.
- Induction of GST is also a remarkable step in this direction.
- The JAM (Jan Dhan, Aadhaar, Mobile) Trinity and transfer of direct benefits such as subsidy on gas, pensions etc., are also steps towards this direction. The opening of a large number of payment gateways, internet banking, payment banks and the emerging reality of e-commerce will prompt the use of banking transactions and plastic money rise significantly.
- More usage of plastic currencies should be brought in by changing the attitude of the public but cash will be permitted as an exception only. Usage of plastic money should be incentivized by allowing some discounts and cash back offers.
- Black money accumulations can be checked by popularizing more payment gateways, online shopping, payment banks etc..
Source :Economic Times