If you are a PAN card holder and you often need it in financial transactions (Pan Card for Financial Transaction) , then the government can give you a big relief in the upcoming budget.
In the Budget 2023-24 (Budget 2023-24) , the central government can eliminate the requirement of PAN card for some financial transactions. Because if the Aadhaar card is already present, then the need for PAN card can be done away with in financial transactions.
Banks have given this suggestion to the government. These financial institutions say that since the accounts are linked to Aadhaar, there is no need for PAN. Actually the purpose of this move is to simplify the rules as per the demand by the financial institutions and banks.
PAN card is mandatory under the current rules, an official aware of the matter told The Economic Times that the government has received proposals in this regard and they are being inspected. At present, if the PAN card is not given during a financial transaction, then according to section 206AA of the Income Tax Act, if the PAN card is not given, there is a provision to levy tax of up to 20 percent on the transaction. The official said that some bank customers have suggested amendment in the Income Tax Act, as some problems are also arising regarding loans from banks.
Demand to provide relief to customers
Some banks want the Income Tax Act to be amended to avoid unnecessary confusion caused by the current dispensation. The official said a possible clarification on the matter could lay down a specified threshold below which PAN card may not be required.
In fact, some problems had come to the fore during the transaction of money from the bank and PAN card was implemented to prevent fraud and tax evasion. Therefore, if a customer transacts a large amount, then PAN card is required.
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. Please tell that if a person does a transaction of more than 20 lakhs during a year, then he has to show the PAN card.
