PAN not Required for Deposits Withdrawals Opening Current Account or Cash Credit Account by Govt or Consulate Offices: CBDT [Read Notification]

The Central Board of Direct Taxes (CBDT) has notified that the Permanent Account Number (PAN) is not required for deposits/withdrawals/opening current account or cash credit account by the Central-State Government or consulate offices.

As per the notice issued on Wednesday, a new provision has been inserted, stating that “In the Income-tax Rules, 1962, in rule 114BB, after sub-rule (1), the following proviso shall be inserted, namely, provided that the provisions of this sub-rule shall not apply in a case where the person, depositing the money as per Sl. No. 1 of column (2) or withdrawing money as per Sl. No. 2 of column (2) or opening a current account or cash credit account as per Sl. No. 3 of column (2) of the Table above, is the Central Government, the State Government or the Consular Office.”

In May, the government has made quoting of PAN or Aadhaar number mandatory if the cash deposits and withdrawals in a financial year exceeds Rs 20 lakh and in case of opening of current account or cash credit account with a bank. The Board had issued a notification on May 10, 2022, for the same. The new rules came into application from May 26, 2022.

To Read the full text of the Notification CLICK HERE

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