Black Money: PAN is Mandatory for Big Cash Deposits [Read Notification]

SPICe - CBDT - PAN - Taxscan

The Central Board of Direct Taxes (CBDT) has recently amended Rule 114B for compulsory quoting of pan in case of cash deposit exceeding fifty thousand in a single day or aggregating to more then 2.5 lakh during the period 09.11.16 till 30.12.16.

Amendment has also been made to Rule 114E for filing AIR report as required u.s 285BA reporting by banking company and a cooperative bank on account of aggregate cash deposits in one or more current account of a person in excess of Rs12.5 lakhs OR Rs2.5 lakh or more in one or more account of a person during 09.11.16 till 30.12.16.

Consequently, PAN must be furnished if cash deposits in bank account during 09-11-2016 to 30-12-2016 exceed Rs. 250000/-. Banks should furnish information regarding cash deposits during 09-11-2016 to 30-12-2016 by way of AIR information if cash deposit in current account of customer exceeds Rs. 1250000 and cash deposit in saving account exceeds Rs. 250000 during this period.

Pan was required to be furnished by depositor for cash deposits of Rs. 50000 or more in bank account per day. Through the new amendment, PAN is a mandatory requirement if cash deposited per day is lesser than 50,000 still if exceeds Rs. 250000 in aggregate, for deposits from 09-11-2016 to 30-12-2016.

Earlier annual limit for saving account was Rs. 10,00,000 and it was Rs. 50 lacs for current account for AIR Information to be filed by Banks to Income tax department. Now, for deposits from 09-11-2016 to 30-12-2016, the deposit limit for AIR Informaiton has been lowered to Rs. 250000/- for saving account and Rs. 1250000 for current account.

Read the full text of the notification below.