The Cash Transaction Reports (CRT) given by the FUI, was observed by Chidambaram as a threshold-based report, the CTR database shows matches for big cases only. “Therefore, a unique identification is required for the excise department as well,” the source added.

Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability and includes in particular dishonest tax reporting, such as declaring less income, profits or gains than actually earned or overstating deductions.

Although PAN number is compulsory for registering with excise and service tax department, in many cases, temporary registration is also given. That is, the source added, is the root of the problem as the temporary registration does not get converted into permanent registration. PAN is compulsory for all who file their income tax returns. In fact, it has now been made mandatory to quote PAN in all documents pertaining to financial transactions notified from time to time by the tax department including sale and purchase of immovable property, motor vehicle or cash payments above a certain limit.