In order to curb the generation of black money, the Centre is at an advanced stage to make it compulsory for people to provide PAN Card details for cash transactions beyond certain limit.
Finance Minister Arun Jaitley disclosed that the government is at an advanced stage in taking into account the necessity of providing PAN Card details if cash transactions beyond a certain limit are carried out. He further said the income tax department has build up its monitoring system on the basis of technology driven analytical tools.
Jaitley said the bulk of black money originates within India, and there is a need to check the cash transactions and change the norm to plastic currency. The government is loyal to make tax rates rational and create avoidance to use of unaccounted money. Those who act in accordance with the income tax details can sleep well and others with hidden foreign assets will have to face the new black money law.
The government had already announced in the 2015 Budget that the rate of corporate tax would be reduced to 25% over the next four years in order to make the nation an investment approachable destination.
The government has devised a strategy to deal with the threat of black money. About 6,500 crore rupees in various accounts in HSBC, Geneva and LGT Bank, Liechtenstein has been evaluated. To check any real time transactions by Indian nationals in US bank accounts and vice versa, the government has also signed an understanding with the Government of United States.