Producing permanent account number (PAN) card details for cash purchases beyond a certain limit will be mandatory in the future, according to Union Finance Minister Arun Jaitley.
The monitoring regime of the income tax department has been strengthened and its capacity to access information and apply technology driven analytical tools to expose tax evasion has been enhanced, Jaitley said.
Noting that high taxation rules and regulations of the past encouraged tax evasion, the finance minister said the government is committed to make tax rates reasonable and create deterrence to use of unaccounted money. Compliance window declarants will have no problems while those with undisclosed foreign assets will be subjected to new black money law, he added.
In order to make India investment friendly destination, the central government in the 2015 Budget announced that the rate of corporate tax would be reduced to 25 percent over the next 4 years and most exemptions, other than those which incentivize savings, would finally be phased out, Jaitley said.
He further added that a total peak balance of about 6,500 crore rupees in list of accounts in HSBC, Geneva and LGT Bank, Liechtenstein, has been assessed.
The government has signed an understanding with the U.S. wherein India and United States would reveal to each other any real time transaction in accounts with financial institutions by its citizens in foreign territories.