Using Aadhaar-PAN linking, I-T department tracks high-value transactions worth Rs 33,000 crore

Using Aadhaar-PAN linking, I-T department tracks high-value transactions worth Rs 33,000 crore

New Delhi: At least Rs 33,000 crore worth dodgy, high-value transactions have been tracked by the Income Tax (I-T) Department due to the Aadhaar-PAN linking mandate, reported The Times of India. The report, based on information provided by I-T sources, suggested that the aforementioned transactions by certain individuals would not have come to light if it weren’t for the linking mandate.

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All these individuals would now face action if the tax department finds any disparity between the transactions and the disclosed income. The department has been sending out regular notifications, asking more users to follow the mandate. It should be noted that only 17 crore odd individuals have followed the mandate while 20 crore are yet to do so.

The Central Bureau of Direct Taxes (CBDT), in an earlier notification, extended the deadline for Aadhaar-PAN linking to June 30. According to the publication, at least 4.4 crore taxpayers have linked Aadhaar with PAN database, thus helping it track all shady and high-value transactions. It should be noted that initial idea for passing the mandate was to flush out duplicate PAN cards, which were used at a rampant rate for money laundering activities and tax avoidance.

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The report went on to say that Aadhaar-PAN linking has helped identification of high-value transactions such as the purchase of an expensive commodity, sale of fixed property and many others. The linking of the two cards has helped the department identify false declarations by individuals who claimed that they did not have a PAN card or were using two different cards.

In FY17 and FY18, a total of 1.65 crore transactions were recorded where individuals opted for Form 61 – used in case where individuals have agricultural income but no PAN  – even after the number was issued to them by the tax department.

There, however, have been differences when it comes to the Aadhaar-PAN linking mandate. While officials suggested that it serves as a smart tool for detection of unreported, high-value transactions and helps the department crack down on possible economic offenders. On the other hand, the critics said that the linking could lead to several incidents of fraud.

 

Source by timesnownews..

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