New Delhi: The government is planning to make it mandatory from the coming budget, for consumers to flash the Permanent Account Number Card (PAN card) even when one wants to buy a watch.
This is going to be Central Government's latest ploy to force people into filing tax returns.
The number of people applying for a PAN is rising rapidly, but the number of people actually filing income tax returns has remained stagnant.
For instance, till September 2005, there were 4 crore Indians with PAN cards. But only 1.9 crore of filed returns.
According to Finance ministry officials, the limit for quoting PAN will be linked to the value of the item and the income tax department is also trying to device a software to track people's PAN by just feeding in their name and address.
The issue of non-compliance on PAN cards is also expected to be addressed in the coming budget.
At present PAN card is required for high value transactions like buying a car or investing in property worth more than Rs 5 lakhs and not for buying small items like a watch or a home theatre system.
It is also necessay while making a deposit of Rs 50,000 or more in an bank account.
So the next time your eyes fall on an expensive watch or a plasma TV, remember the tax man has got his eyes on you.
(With inputs from Fatima Karan and Sapna Das)
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