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.
{{/usCountry}}There is also a requirement for quoting PAN on bank deposits of over ₹50,000 made in one day.
{{/usCountry}}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.