New Cash Deposit Rules: The government has introduced new rules for cash transactions in banks or post offices. Under the new rules, PAN and Aadhaar will be required for depositing cash of Rs 20 lakh or more at a bank or post office in any one financial year.
The Central Board of Direct Taxes (CBDT) has issued new rules under the Income Tax (15th Amendment) Rules, 2022. However, the new rules will take effect on May 26 However, they have been informed.
Read the full notification of the new rules regarding cash transactions here
Which transaction will require Pan-Aadhaar?
Pan-Aadhaar will be mandatory for depositing cash of Rs 20 lakh in one or more accounts at a banking company, corporate bank or post office.
It will also be necessary to withdraw Rs 20 lakh in cash from any one or more accounts of a banking company, co-operative bank or post office in a financial year.
Pan-Aadhaar will be mandatory for opening current account or cash credit account in banking company, co-operative bank or post office.
PAN card is mandatory even for opening a current account
Now anyone has to show their PAN card to open a current account. At the same time, those whose bank accounts are already linked to PAN must also follow this rule during the transaction.
Keep an eye on cash transactions
The government wants to bring more people under the tax net through this initiative. They make huge cash transactions, but they don’t have a PAN card or file an income tax return. When making such transactions, the Income Tax Department will be able to easily trace such transactions in the PAN number.