PAN, Aadhaar mandatory for Transactions above Rs. 20 Lakh: CBDT amends Income Tax Rules [Read Notification]

PAN - Aadhaar - mandatory - Transactions - CBDT - Income Tax Rules - Taxscan

The Central Board of Direct Taxes (CBDT) issued a notification on May 10, 2022, amending the income tax rules to make the furnishing of a Permanent Account Number (PAN) or Aadhaar compulsory for a further set of transactions.

According to the notification, a person must obtain and quote PAN when he enters into any of the following three transactions: High-value cash deposit: Cash deposit (or deposits) aggregating to Rs 20 lakh or more in a financial year, in one or more accounts of a person, with a banking company, a co-operative bank, or a post office will require PAN to be furnished.

The following transactions are covered by the notification;

(a) cash deposit or deposits aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office;

(b) cash withdrawal or withdrawals aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office;

(c) opening of a current account or cash credit account by a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office.

The permanent account number or Aadhaar number alongwith 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.

 The new rules will be effective from May 26, 2022.

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Notification No: 53/2022

Date of Judgement:   10th May, 2022

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