How Will New PAN and Aadhaar Rules Impact Your Big Purchases Over 1 Lakh?

The Supreme Court-backed Special Investigation Team (SIT) on black money has recommended a series of measures, including quoting the Permanent Account Number for all purchases beyond Rs 1 lakh, in addition to submitting an identity proof such as Aadhaar. The rule, as suggested by the SIT, should cover purchases made by cash as well as cheque. It has further recommended that a central "Know Your Customer" (KYC) database be set up, which captures details of PAN, passport number, or driving license number, often quoted for transactions.

Nothing is new in these measures. The only thing added is the Aadhaar Card Number. Nevertheless, it would be naive to think that it would reduce corruption. The real estate industry generates the maximum amount of black money. When a sales deed is made, the PAN Card Number is mentioned in the sales deed; however, it has not stopped underhand dealings.

The malaise also lies in the high volume of cash transactions even for legal purposes. The government should implement means to control cash transactions in all spheres of economic activity. As long as we depend on cash transactions, we will face the menace of black money.

Thanks,
Dinesh Divekar