PAN, Aadhaar must for cash deposit, withdrawal over ₹20 lakh
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The government has made disclosure of PAN and Aadhaar details mandatory for cash deposits and withdrawals aggregating to ₹20 lakh or more in a financial year.
Quoting PAN and Aadhaar details is also mandatory for opening of current account or cash credit account with a bank, according to a Gazette notification issued by the Central Board of Direct Taxes (CBDT) on Tuesday.
As per the latest rules, PAN or Aadhaar will be required for the following transactions:
1. Cash deposit or deposits aggregating to ₹20 lakh or more in a financial year, in one or more account of a person with a banking company or a co-operative bank or a post office.
2. Cash withdrawal or withdrawals aggregating to ₹20 lakh or more in a financial year, in one or more accounts of a person with a banking company or a co-operative bank or a post office.
3. Opening of a current account or cash credit account with a banking company or a co-operative bank or a Post Office.
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Every person shall at the time of entering into a transaction quote their Permanent Account Number (PAN) or Aadhaar number, as the case may be, in documents pertaining to such transaction, the rules say.
On March 31, the Central Board of Direct Taxes (CBDT) had extended the deadline for linking PAN and Aadhaar by another one year till March 31, 2023. However, those linking PAN and Aadhaar from April 1, 2023 will have to pay fees for doing so, while the PAN will remain operational.
Under the provisions of the Income Tax Act, 1961, every person who has been allotted a PAN as on July 1, 2017 and is eligible to obtain an Aadhaar number, is required to intimate his Aadhaar to the prescribed authority on or before March 31, 2022. On failure to do so, his PAN shall become inoperative and all procedures in which PAN is required shall be halted. The PAN can be made operative again upon intimation of Aadhaar to the prescribed authority after payment of a prescribed fee," the CBDT had said in a release.