Budget 2017: Govt may lower PAN quoting limit on cash transaction

New Delhi: The government is expected to bring down the threshold of cash transactions to Rs 30,000 from Rs 50,000 currently which would require quoting PAN card details.

The Economic Times said in a report quoting sources that the announcement related to lowering of cash transaction limit for quoting PAN card is likely to be announced in the upcoming Budget.

The government had last year made quoting of PAN compulsory for cash transactions such as hotel or foreign travel bills exceeding Rs 50,000 - a move aimed at curbing the black money menace with effect from January 1, 2016.

Last week, the Income Tax department had amended I-T rules and asked banks to obtain permanent account number (PAN) or Form-60 in case PAN is not available, from all account holders.

The rule will, however, not apply to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jan Dhan accounts.

The BSBDAs were introduced to take care of simple banking needs of people, which come with free ATM card, monthly statement and cheque book.

Last month, RBI had mandated that no withdrawal shall be allowed from the accounts having substantial credit balance/deposits if PAN or Form No.60 is not provided in respect of such accounts.