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The notification said 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.
Written by Kanishka Singharia | Edited by Chandrashekar Srinivasan
The government has made quoting of PAN or Aadhar mandatory from May 26 in case cash deposits and withdrawals in a financial year exceed ₹20 lakh. A notification by the Central Board of Direct Taxes (CBDT) said “… the term transactions include deposit/withdrawal of cash amounting to ₹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.”
As per the new rules, furnishing PAN or Aadhaar will be compulsory in the following transactions:
*Cash deposit or deposits 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
*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
*Opening of a current account or cash credit account by a person with a banking company or a co-operative bank or a post office
The notification also said 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.
There is also a requirement for quoting PAN on bank deposits of over ₹50,000 made in one day.
The CBDT has said that under the new rule PAN or Aadhaar, with demographic 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 either, for the purposes of authentication as referred to in section 139A.
The principal director-general or director-general shall lay down the format and standards along with procedure for authentication of PAN or Aadhaar.
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