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PAN card applications surge after demonetisation

Many people are also approaching chartered accountants to file their income tax returns for the first time after note ban.

Ever since the Modi government had announced the demonetisation campaign there has been a surge in the number of people applying for PAN cards. Traders who till now were dealing in cash transactions are keen to obtain a pan card after the government’s decision to take stringent action against black money hoarders. Since pan number is required  for depositing more than Rs 50,000 in bank account hence many of them are keen to apply for PAN card. On the other hand, many people who have not filed their income tax returns are contacting chartered accountants and tax return preparers for filing income tax return. Already  chartered accountants are saying that they have been receiving queries from traders and salaried class people for filing income tax returns.

Amar Parekh a pan card agent said, “Many people are approaching me as they want to for apply for a pan card. Usually, I receive five to 10 enquires every month. However, after demonetisation more than five to six persons are calling me every day for obtaining a new PAN card. Most of these people belong to the unorganised sector. I normally charge Rs 150 for a new pan card but now I have increased it to Rs 250 due to huge demand from applicants.”

“I used to carry out my transactions in cash but after the demonetisation drive I had to deposit my lumpsum money in my bank account. Hence, I have applied for a pan card. It will also serve as a valid identity proof for me while carrying out banking transactions,” said Ramnaresh Singh, a vendor.

“I have never filed my income tax returns but this year I will be filing my returns. Since, I am unaware about how to file returns I will approach chartered accountant who will guide me to file my return. This is the right time for me to declare my income as the government is likely to take action against tax-evaders,” said Vasant Dalvi, a financial executive from Malad.

“We will keep a watch on lumpsum deposits made in savings accounts during November 9 to December 30 hence many people are worried that they might receive a notice from the Income tax department. Therefore, they are seeking assistance from chartered accountants and tax return preparers for filing income tax returns,” said an official from income tax department on the condition of anonymity.

“Many people are visiting my office for filing income tax returns. Most of them are unware about the process and will be filing their return for the first time. The government wants more people to come forward and declare their income. After demonetisation many people have voluntarily come forward to file income tax returns so that they also will be included in the list of tax-payers,” said Sumit Shah a tax practitioner from Kandivali.

Tax lawyers are burning the midnight oil to meet the sudden upsurge in filing of income tax returns. Even housewives, traders, contractual workers and students are applying for pan card.

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