Latest Post

Income Tax Return F.Y. 2021-2022 PAN, Aadhaar Mandatory for Cash Deposits or Withdrawals Above Rupees Twenty Lakh

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

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.”

Sl. No.Nature of transactionPerson
(1)(2)(3)
1.Cash deposit or deposits aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with, (i)  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); (ii) Post Office(i) 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); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).

2.Cash withdrawal or withdrawals aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with, (i) 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); (ii) Post Office(i) 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); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).
3.Opening of a current account or cash credit account by a person with, (i) 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); (ii) Post Office(i) 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); (ii) Postmaster General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).

The CBDT has prescribed that under the new rule the permanent account number or Aadhaar number along with demographic information or biometric information of an individual shall be submitted to the authorized Director of Income-tax (Systems) with the approval of the Board, for the purposes of authentication referred to in section 139A.

Leave a Reply

Your email address will not be published.