From May 26, quoting of PAN or Aadhaar is mandatory for these transactions

ET Online May 27, 2022

For cash deposits and withdrawals

If cash deposits and withdrawals in a financial year exceeds Rs 20 lakh, the government has made quoting of PAN or Aadhaar number mandatory. You will also need to quote it while opening of current account or cash credit account with a bank. Image Source: Getty Images

Effective date

The CBDT issued a notification on May 10, 2022, for the same. The new income tax rules are effective from May 26, 2022. Image Source: Getty Images

What the CBDT notification states

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. Image Source: Getty Images

That is not all

"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." Image Source: Getty Images

When you have to quote PAN or Aadhaar

1) Cash deposits aggregating to Rs 20 lakhs or more in the financial year in one or more accounts with a bank or a post office.2) Cash withdrawal or withdrawal aggregating to Rs 20 lakhs or more in the financial year in one or more accounts with a bank or a post office.3) Opening of current account or cash credit account with a bank Image Source: Getty Images

Keep your PAN handy

These rules will be applicable from May 26, 2022, and hence every person who intends to undertake afore-stated transactions should obtain the PAN, otherwise, such person would not be able to perform afore-stated transactions. Image Source: Getty Images

Why this was done

The new rules may be seen as a step by the government towards spreading its arms in tracking the cash deposits/withdrawals to combat the circulation of cash in the economy, say tax experts. Image Source: Getty Images

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