From today onwards new rules on transactions banks will be followed. According to the changed rules, PAN and Aadhaar cards will be required for transactions of Rs 20 lakh or more in a bank or post office in a financial year.
The Central Board of Direct Taxes (CBDT) has framed new rules under the Income Tax (15th Amendment) Rules, 2022, the notification of which was published on May 10, 2022.
It is mandatory to give details of PAN or Aadhaar cards in the following transactions-
- Deposit of 20 lakhs in cash in one or more accounts in a banking company or a corporative bank or anyone post office in a financial year.
- Withdrawal of 20 lakh in cash from any one or more accounts in a banking company or a co-operative bank or a post office in a financial year.
- On opening a new current account or cash credit account with a banking company, co-operative bank, or post office.
Now anyone has to give their PAN card number to open a current account. People, whose bank account is already linked with PAN, will also have to follow this rule during transactions.
The CBDT notification dated May 10, 2022, mentioned that an individual's PAN or Aadhaar number, along with demographic or biographic information, must be given to the principal director general of Income Tax (Systems), the director-general of Income Tax (Systems), or an official authorized by either, for authentication purposes as defined in section 139 (A).
The requirements for PAN or Aadhaar authentication would be established by either the principal director general or an official authorized. The circular's major goal, according to reports, is to track and prevent uncharted financial transactions through the cash route.
Earlier, a PAN card was mandatory while depositing cash over ₹ 50,000 in a single day, but there was no yearly restriction on transactions.