The Government on Tuesday declared that now Aadhar Card is a mandate for filing I-T returns. They also said that the Aadhar is also now a requisite document for PAN Card. The Centre also decided to lower cash transaction limit from Rs. 3 lakhs to Rs. 2 lakhs. These decisions were part of the financial bill amendments, which will put into effect by the Budget Proposals. Hasmukh Adhia, revenue secretary said that the Budget 2017 proposed cash transactions of above Rs. 3 lakhs must be banned, but the financial bill lowered the ceiling to Rs. 2 lakhs.
Adhia speaking to the popular news daily HT, said, “The difference between Demonetization and this is that the former is used to destroy the stock of black money while the ban will prevent the future flow of black money. This limit will also reduce the quantum of cash transactions in the economy.” This, he said, will act as a restraint, and the penalty for violation of this rule will be equivalent to the amount transacted.
These rules of making Aadhar Card mandate for I-T returns filing and PAN card application will be in effect from July 1. Aadhar number can be used to file the ITR and failure of the declaration will leave the PAN card invalid. The financial bill is also called as a money bill, and does not require the approval of the Rajya Sabha and Lok Sabha and can be approved only by Lok Sabha alone. And with BJP having the majority, this bill is expected to get an easier approval.
The limit on cash transactions is introduced keeping with recommendations of the Special Investigation Team (SIT) in an attempt to curb black money. Along with this limit, the Income Tax Act prohibits accepting or making payment of an advance of Rs. 20,000.00 or more in cash for the purchase of immovable property. PAN also has been made mandatory for all kinds of purchases above Rs. 1 lakh.
