On 25 November 2011 22:58, Rony <[email protected]> wrote: > The UID will improvise on the limitations of the PAN card.
Let us examine this. What are the limitations of the PAN card, and how does the UID eliminate them? The PAN card (or more accurately, the PAN itself) is used to contain tax evasion. You have to quote your PAN everywhere you spend money. There are large data crunching computers that cross-link this data, and attempt to see if an individual is spending (cheques/credit cards/ATM withdrawals etc.) more than what he is earning (salary, interest, capital gains, rent...) and flag such cases for investigation. Can the UID improve on this? Remember, the finance minister is on record saying that ever since the introduction of the PAN, tax collection has gone up by so much that he could cut tax rates and still earn the government the same amount of money. How will the UID improve on this scenario where it appears to me that the card is actually working well? The other side of this story involves tax-evasion transactions (black market, hawala, whatever). People pay for goods and services in cash, fudge documents to hide it, no tax paid, hoard such cash in bank lockers and hiding places at houses, send it out of the country through the hawala route, bring it back again via the DTAA with Mauritius in the form of P-notes and such. How exactly does the UID fix this problem? Are we going to make Aadhar mandatory for all Mauritians as well? Binand -- http://mm.ilug-bom.org.in/mailman/listinfo/linuxers
