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Govt to block PAN cards of tax defaulters

The move is aimed at checking the generation of black money and route of illegal income to safe havens

Policy Pulse
Publish Date: Jun 20 2016 1:26PM | Updated Date: Jun 20 2016 1:26PM

Govt to block PAN cards of tax defaulters

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 issue was discussed during last week’s Revenue Gyan Sangam where Prime Minister Narendra Modi asked tax officials to broaden the country’s tax base to 10 crore from the five crore at present.
 
 
The move is aimed at checking the generation of black money and route 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 the 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 Rs 50,000. It is also a must for all transactions, including the purchase of jewellery, above Rs 2 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% of the country’s 1.2 billion people pay taxes. Tax revenue amounts to only 17% of GDP as against the 25% in the US and 33% in the UK.