After cracking down on unaccounted money stashed abroad by Indians, the government is now working to curb domestic flow of black money, by plugging gaps in regulations.
At present, the Central Board of Direct Taxes (CBDT) is looking to rationalise income-tax rules; the move includes widening of coverage for mandatory quoting of permanent account number (PAN) for specified transactions. Also, it is considering expanding the scope of mandatory annual information returns (AIRs) for third-party agencies, to capture greater information, in line with the government’s efforts to build a large database for checking tax evasion and the flow of black money in the economy.