New Delhi: In order to check the menace of black money, Income Tax department may soon put a cap on the amount of cash a person can keep at home or carry in a transit.
It is expected that the department, in the forthcoming budget 2015-16, may cap at Rs 10 lakh the amount of cash for storage or transaction.
According to a report published in Hindustan Times, IT department may also make PAN (permanent Account Number) mandatory in case of high-value purchases equal to or above one lakh.
If unaccounted cash of more than Rs 10 lakh is recovered then a strict penalty is likely to be levied by the department.
All these moves are aimed at implementing BJP's promise of tackling black money issue during Lok Sabha Elections. An SIT (Special Investigating Team) has also been appointed by the Supreme Court to find out the amount stashed abroad by the Indians.
“The threshold amount has been devised after careful consideration so that carrying on the day-to-day activities of ordinary citizens is not affected, a SIT source told HT.
“This will also curb the movement and transportation of cash from one destination to another,” he added.
Currently, the focus of government is not only to check the money flowing outside but also the menace growing at home.
At present, there is no restriction on movement or storage of large amount of cash except that the standard of living of the person is taken into account. The proposed change can help agencies to take strict action against the violators or unaccounted currency.
CBDT (Central Board of Direct Taxes) has also raised a demand to make PAN mandatory for purchases of above Rs. 1 lakh.
It has demanded that incase of high-level purchases, both buyer and seller party should produce PAN and the same should be mentioned on the invoice too. And, if the same is unavailable then any other ID proof accepted by the government like Aadhar Number should be allowed as the substitute.