MoF may dilute PAN provisions

NEW DELHI, July 13: The Centre plans to water down some of the measures announced on the mandatory use of the permanent account number (PAN) or the general index register (GIR) number announced by finance minister Yashwant Sinha in his budget speech.

The proposed amendments on the use PAN for various transactions are slated to come into effect from August 1, 1998. The finance minister had proposed to make it obligatory for assessees to quote their PAN or GIR number for certain high-value transactions, which include purchase and sale of immovable property, purchase and sale of motor vehicles, transactions in shares exceeding Rs 50,000, opening of new bank accounts, fixed deposits of more than Rs 50,000, applications for allotment of telephone connection and payment of hotels exceeding Rs 25,000. Quoting of PAN or GIR numbers or even giving a declaration on a form to be prescribed by the Central Board of Direct Taxes will scare away people from parking surplus money with the banks.