PAN, Aadhaar mandatory from today for transactions of 20 lakh or more

By, New Delhi
May 26, 2022 02:19 PM IST

Earlier this month, the Central Board of Direct Taxes (CBDT), in a notification dated May 10, announced the new rule, along with the date of its implementation.

The cash withdrawal and deposit system in the country have undergone a major change starting today, i.e. Thursday, May 26, as it will now be mandatory for citizens to quote their PAN card or Aadhaar card number for cash withdrawals/deposits amounting to 20 lakh or more in a single financial year.

Image used only for representation (File Photo/HT)
Image used only for representation (File Photo/HT)

Also Read | PAN, Aadhaar mandatory for cash deposits or withdrawals above 20 lakh

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The new rule was announced by the Central Board of Direct Taxes (CBDT) in a notification dated May 10. “The term transactions includes deposit/withdrawal of cash amounting to 20 lakh or more in a financial year through one or bank accounts. Account(s) not just with commercial bank, but even co-operative bank or post offices,” the notification read.

The fresh guideline will also be applicable for the opening of a current bank account or cash credit account by a person with a banking company or a co-operative bank or a post office.

Additionally, a person is required to apply for PAN at least seven days before making any of the aforementioned transactions.

The CBDT notification, meanwhile, also stipulates that the PAN or Aadhaar, with demographic or biographic information of an individual, shall be submitted to the principal director general of Income Tax (Systems), or director general of Income Tax (Systems), or an official authorised by either, for the purpose of authentication as referred to in section 139(A).

The principal director general, or director general, or the official authorised by either, would lay down the format and standards along with the procedure for authentication of PAN or Aadhaar.

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