The government may lower the PAN quoting limit on cash transactions to Rs 30,000 from the current threshold of Rs 50,000, reports said on Thursday.
The announcement related to bringing down cash transaction limit for quoting PAN card is expected to be made in the upcoming Budget, according to a report in leading English daily.
The quoting of PAN for cash transactions such as hotel or foreign travel bills exceeding Rs 50,000 was made compulsory last year. The move was taken in a bid to curb the black money menace with effect from January 1, 2016.
I-T rules were amended by the Income Tax department last week and banks were asked to obtain from all account holders PAN or Form-60 in case PAN is not available.
The rule, however, doesn’t apply to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jan Dhan accounts.