It is now compulsory to quote your PAN or Aadhar number for cash deposits and withdrawals of Rs 20 lakh or more in a financial year. The person has to submit a PAN or Aadhaar number while opening a current account or a cash credit (CC) account with a bank, including a post office or a co-operative bank. The government has announced the new rules via a notification dated 10th May 2022.
From now on, it will be mandatory for every person entering into the below-specified transactions to present their PAN or Aadhaar number:
1) Cash deposits in all the accounts with a bank, including a co-operative bank or a post office, aggregating to Rs 20 lakh or more in a financial year, or
2) Cash withdrawals from all the accounts with a bank, including a co-operative bank or a post office, aggregating to Rs 20 lakh or more in a financial year, or
3) While opening a current account or cash credit account with a bank, including a co-operative bank, or a post office
Furthermore, if the person intends to enter into the above transactions, they should apply for a PAN card, at least seven days in advance.
Earlier, PAN number was necessary to quote only on cash deposits over Rs 50,000 in a single day. The government has now made PAN/Aadhaar quoting compulsory for cash deposits and cash withdrawals of Rs 20 lakh or more in a financial year. Earlier, there was no such requirement for cash withdrawals. The income tax department is certainly becoming highly vigilant against cash transactions.
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