|Don't PAN Aadhaar linkage|
|Saturday, 25 March 2017 00:00|
Jaitley does well to stress its anti-evasion properties
Finance minister Arun Jaitley has done well to answer critics of his compulsory Aadhaar-PAN linkage by saying that if there is a new solution to tackling tax evasion, he will use it. While it is true that the PAN card is the fulcrum around which today’s tax-evasion strategy is built, there are simply too many fake PAN cards. So, well-heeled individuals use multiple PAN cards to show smaller income levels, for instance. Though PAN card details are sought for high-value purchases like automobiles and jewellery, to the extent the PAN card is a fake, the chain breaks down and the transactions remain secret from the taxman. Similarly, with not all bank accounts declared to the taxman, this becomes another way to hide incomes and expenditures.