PAN, Aadhaar mandatory for cash deposits or withdrawals above Rs 20 lakh

Want to deposit cash of over Rs 20 lakhs or more? From May 26,2022, the depositor will have to provide a PAN or Aadhaar number.

The CBDT notified amendments in the Income Tax Rules, 1962 prescribing new transactions for obtaining and quoting PAN.

A notification from the Central Board of Direct Taxes (CBDT) said it is mandatory to provide a permanent account number (PAN) or Aadhaar will from May 26, 2022, if the cash deposit exceeds Rs 20 lakh or more in a financial year.

In Budget 2020, the Finance Ministry had introduced Tax Deducted at Source (TDS) on cash withdrawal in excess of Rs 20 lakh and this amendment to the rule has been added for specific transactions. With the latest amendment, it is for the customer and the financial institution --bank co-operative bank, a post office-- that must ensure the PAN and Aadhar details are given t the time of initiating a transaction.

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If you want to withdraw cash amounting to Rs 20 lakh or more in a financial year in one or more accounts of a personal with a bank, co-operative bank of a post office, PAN and Aadhaar will have to be provided.

To open a current account or cash credit account with a banking company or a cooperative bank or a post office, PAN and Aadhaar has been made mandatory.

"Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated," CBDT notification said.

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 the purposes of authentication referred to in section 139A, CBDT added.