PAN Card new rules can provide relief to common people in many sectors.Image Credit source: ChatGPT
In the last one year, the Central Government has started a big series of tariff reforms. First, while giving great relief to the common people in personal income tax, the government made a provision of not charging any tax on the income of Rs 12 lakh. After that GST reform was brought in the month of September. Under which many goods in the country were either kept out of the tax net. Or the tax on many goods was reduced. But this does not completely cover the matter.
There are many rules imposed by the government on purchases also. To buy a house up to Rs 10 lakh, PAN card will have to be shown. This means that it will come under the tax net. If you are depositing or transferring any huge amount in banks then you will have to show PAN card. This means that the government is keeping an eye on your transactions through income tax. In such a situation, how will the common people get the benefit of tax reduction?
How will the public be able to take advantage of reduced taxes? The public will be motivated to spend more and more. To end this problem, the government has changed the PAN rules to provide relief to many sectors and common people. The government has doubled the limit for spending on real estate.
Relief has been given to the common people by increasing the limits of deposits and withdrawals. Even the PAN rules have been relaxed by increasing the limit on hotel and function bills. So that consumption and demand can increase in the country. Also the real estate sector can get a boost. Let us also tell you what kind of benefits can be seen by relaxing the rules of PAN card.
increase in consumption
The government has given great relief to the common people under the Personal Income Tax and GST reforms. But how to increase consumption remains a big problem. To increase liquidity in the market, it had become very important for the government to relax some rules of PAN. There will be a need to spend to increase consumption. If the government keeps an eye on excessive expenditure through PAN, then common people will face problems in expenditure.
This is the reason why the government has relaxed the rules of PAN by increasing the limit for spending money. So that people can increase their spending and consumption as much as possible. This is the reason why the government has made changes in the hospitality and event sector. PAN card will be required only if the payment made to hotels, restaurants, banquet halls, convention centers or event managers exceeds Rs 1 lakh. At present this limit is Rs 50 thousand.
increase in demand
Another reason for relaxing PAN rules could be increase in demand. There has been a significant decline in demand after the festive season. Indications of this have been seen in the quarterly results of all the related companies. In such a situation, it is very important to increase demand from common people after GST reform. This is the reason why an attempt has been made to increase demand by giving relief in PAN rules. So that the demand from people in hospitality and service sector can increase. The common people can be assured that excessive expenditure is not being monitored by the government through PAN. The fear of tax can be removed from the minds of common people.
Growth in real estate sector
In the draft issued by the government, an attempt has been made to provide major relief to the real estate sector. In recent times, there has been a significant decline in the real estate sector. To boost this, the government has changed the rules of PAN. According to the report, for property related transactions, the draft rules propose to increase the PAN limit from Rs 10 lakh to Rs 20 lakh for purchase, sale, gift or joint development of immovable property.
This amendment reflects increasing property values and aims to update the old boundaries. According to real estate experts, many people want to use maximum cash to buy property. This rule will be even more effective for those buying small houses. This will increase the demand for small and affordable houses.
Increase in deposits
There has been a decline in deposits in the country in recent years. If someone deposits more than Rs 50 thousand in banks in a financial year, then he has to provide PAN card. Which has been increased to Rs 10 lakh. If this happens then common people will benefit a lot. Amounts up to Rs 10 lakh can be deposited in banks without any government monitoring.
This will reduce fear in the minds of common people. Liquidity will increase in banks. One of the biggest changes relates to cash transactions with banks. According to the draft rules, providing PAN number will be mandatory only if a person deposits cash amount of Rs 10 lakh or more in one or more bank accounts in a financial year.
On the other hand, the government has applied similar rules in withdrawal also. Now common people will not have to show PAN card for withdrawal of money lying in banks i.e. up to Rs 10 lakh. Bank customers will be able to withdraw up to Rs 10 lakh easily and quickly without any restrictions. Earlier, it was mandatory to provide PAN number if depositing more than Rs 50,000 in cash in a day in any bank or co-operative bank.