(This story originally appeared in on Sep 18, 2017)

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NEW DELHI: After debating for months, the government is moving to make Permanent Account Number ( PAN ) the Aadhaar for businesses as well as non-government organisations as it looks to close possible gaps for generation of black money.Sources told TOI that the ministry of corporate affairs (MCA) has proposed amendments to the Income Tax Act as well as the Prevention of Money Laundering Act for the purpose and the government is looking at a mechanism under which any entity with cumulative transactions of over Rs 2 lakh annually will have to comply with the regulations.While most businesses and NGOs have PAN, its use is mandatory for any cash transaction of over Rs 50,000 and for complying with know-your customer (KYC) norms in banks. Sources said the amendments are meant to check any possibility of misuse. During discussions it has emerged that businesses will need to provide Aadhaar at the time of registration of companies and partnership firms, ensuring that individuals who are directors or promoters of these entities are easily tracked and floating so-called benami companies become tougher. “The government may make it mandatory for key management personnel (such as managing directors and chief executives) to sub mit Aadhaar but that's something that will be done in the future,“ said a source, who did not wish to be identified.MCA has already moved to a system where a PAN is generated for companies at the time of incorporation, a process that the government claims takes less than 24 hours. But partnership firms and trusts are not part of the process as they are handled by other agencies, including state governments.Through the proposed amendments, all the entities would be brought on to the same plat form and it will be easier to track them, said an official.The ministry had discussed various options including development of an Aadhaartype identity for businesses, an idea which was also discussed with the information technology ministry . But it has now opted for PAN. A few years ago, the government had decided to treat PAN as the unique identification number for businesses, instead of generating multiple numbers for provident fund, tax and labour law-related compliances.In recent months, the government has cracked down on companies at multiple levels, including identifying “shell companies“. While Sebi has acted against listed companies, MCA has cancelled registration of over two lakh defunct companies, which had not filed returns for years, while also cancelling the directorship of those on the boards of these entities.