Budget 2017: PAN may soon be necessary for cash transactions above Rs 30,000

Moneycontrol Bureau
In its efforts to move towards a cashless economy, the government may bring down the cash threshold limit for quoting PAN card details from Rs 50,000 to Rs 30,000, according to The Economic Times.

The report said an announcement in this regard may come in the February 1 Budget. It quoted sources as saying that the threshold for quoting PAN card details for merchant transactions could also be reduced from the current Rs 2 lakh. In addition, there could also be the introduction of cash handling charges for  payments above a certain limit.

For people who do not possess a PAN card, Aadhaar card may be a permissible alternative for large cash transactions. The development comes amid fears that despite the government's decision to devalue 86 percent of the currency last November, the recent relaxing of limits on cash withdrawals may once again bring large amounts of cash into circulation.