Government has made PAN mandatory for sending money abroad for the purpose of buying shares in foreign markets or for education of children. This new rules is basically to keep track of unaccounted money.
This step has been taken to make strict rules for remittance of money under Liberalised Remittance Scheme (LRS). Any individual using this scheme will henceforth be required to share PAN details. This scheme is mostly used by Indians who wish to transfer money for their child’s education abroad. The scheme also grants provision to buy stocks of foreign companies and also for buying property. Under this scheme, people can invest or send money anywhere in the world.
This guideline was imposed on Wednesday by RBI after discovering that a lot of Indians which includes businessmen, celebrities and even diamond traders made remittances for betting on stocks and properties which is basically a breach of rules.