PAN or Aadhaar card: The Central Board of Direct Taxes (CBDT) issued a notification on May 10, 2022, making the furnishing of Permanent Account Number (PAN) or Aadhaar compulsory for a further set of transactions. PAN or Aadhaar card mandatory for depositing or withdrawing money in bank.
The government has made it mandatory to quote either the Permanent Account Number (PAN) or Aadhaar for depositing or withdrawing over Rs 20 lakh in a financial year. The Central Board of Direct Taxes (CBDT), in a notification, said furnishing the PAN or Aadhaar will be mandatory for such high-value deposits or withdrawals from banks in a financial year, or opening of a current account or cash credit account with a bank or post office.
1) New PAN rule on cash deposits, withdrawals in banks, post offices explained in 10 points
2) As per this, cash deposit or withdrawal exceeding Rs 20 lakh in one or more bank accounts or the post office in a financial year would need to quote PAN or Aadhaar.
3) The Rs 20 lakh threshold is for the aggregate of all deposits or aggregate of all withdrawals in a year.
4) This requirement also covers deposits and withdrawals from cooperative banks.
5) The CBDT notified amendments in the Income Tax Rules, 1962 prescribing new transactions for obtaining and quoting PAN.
6) The notification says, “the term transactions include deposit/withdrawal of cash amounting to Rs 20 lakh or more in a financial year through one or more bank accounts. Account(s) with not just commercial bank but even co-operative bank or post offices.”
7) The CBDT has prescribed that under the new rule the permanent account number or Aadhaar number along with demographic information or biometric information of an individual shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for authentication referred to in section 139A.
8) The Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall lay down the formats and standards along with the procedure for authentication of a permanent account number or Aadhaar number.
9) The notification also says that any person who intends to make these transactions should apply for a PAN at least seven days before the date on which the transaction is intended to be made.
10) If a person who wants to open a current account or cash credit account with a bank or post office needs to quote PAN.
11) There is a requirement for quoting PAN on bank deposits of over Rs 50,000 made in one day.