Tax dept to send seven lakh letters for high value transactions without PAN
In a bad to crackdown on those concealing their spends, the Income Tax (I-T) department has identified 90 lakh high value transactions where Permanent Account Number (PAN) was not quoted and has decided to send out seven lakh letters seeking details. Those whose transactions have been identified will be asked to provide PAN in the first stage. Although the tax department did not spell out the futu re course of action, these transactions are then expected to be mapped against the returns filed by the entities and in case any gaps are spotted, notices demanding payment could also be issued in future.
The transactions where PAN was not submitted included cash deposits of Rs 10 lakh or more in savings bank accounts or property transactions of Rs 30 lakh or more and have been sourced from Annual Information Returns filed with the department. The state ment came as a surprise given that the banks as well property registration authorities have insisted on PAN for the last few years. From the entire data, the finance ministry managed to group the transactions into seven lakh “highrisk“ clusters involving 14 lakh transactions, which were being scrutinised. The high value transaction trails were detected following the department’s drive to bring to book maximum amount of black money during the one time compliance window closing on Sep. 30. Dealing with non-PAN related info is seen as a crucial element of expanding tax base. The 90 lakh transactions are spread over 2009-10 and extend up to the current financial year. The government said those who received the letters need not rush to the tax office. They can provide the response through an efiling portal, where they can log in by quoting a Unique Transaction Sequence Number provided in the letter.