New Delhi, India:- According to the report around 180 million permanent account numbers could become obsolete if it is not linked with Aadhaar by March 31.
This news is quoting from the Income Tax Department.
IT department is taking this step who use multiple PANs to conduct high-value transactions. In this the government might also track individual spending patterns if they find a large sum of the amount being spent on luxury items but if their income is low which has been reported to evade tax.
The department gets an account of these details from banks, mutual funds, credit card companies, financial institutions, etc.
Naveen Wadhwa, deputy general manager at Taxmann, AAP consultancy told the publication that, If PAN is not yet linked with Aadhaar there is a possibility to obtain multiple PANs. Once a PAN number is linked with an Aadhaar, it will not be possible to obtain multiple PANs.
In India, it is surprising to say that in a population of 1.3 billion only 15 million contributions to the I-T kitty. Our Prime Minister Narendra Modi has also pointed this recently.
Data report suggests that there is an urgent need to extend the tax base said by IT Department officials.
There are 50.95 crore PAN cardholders in the country as of June, but now only 6.48 crore of them file income tax returns (ITR), and only 1.5 crores actually pay tax.
IT officials told the publication that some people use multiple Pan cards to hive high-value transactions and keep themselves out of the tax net. This result only three to 327.1 million PANs are linked with Aadhaar, one-third PANs could be used the scanner unless link with Aadhaar before March 31.
The government of India may also include payment such as education fees, electricity consumption above Rs 1 lakh, gold or white goods above Rs 1 lakh or domestic business class air travel, property tax above Rs 20,000, life insurance above Rs 50,000, and health insurance premium above Rs 20,000.
It is been said by the Wadhwa that the proposed move of the government to expand the list of the expenditure would not cause any incontinence to honest taxpayers. The government zeros in only those cases dad manifest a larger amount of gap between the return income and expenditure.