Banking PAN, Aadhaar numbers mandatory for cash withdrawals and deposits above this amount. Find out the details
New Delhi: Customers have to furnish PAN or Aadhaar numbers if cash withdrawals and deposits in a financial year cross Rs 20 lakh and also to open a current account or cash credit account with a bank.
The Central Board of Direct Taxes (CBDT) issued a notification on May 10, 2022, in this regard.
The new rules will be effective from May 26, 2022.
As per the notification, "Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated."
The notification further states, "The permanent account number or Aadhaar number along with 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."
As per the notification, every person to obtain and quote Permanent Account Number ("PAN"), wherein he enters into any of the following transactions:
- Cash deposits aggregating to Rs 20 lakhs or more in the financial year in one or more accounts with a bank or a post office.
- Cash withdrawal or withdrawal aggregating to Rs 20 lakhs or more in the financial year in one or more accounts with a bank or a post office.
- Opening of current account or cash credit account with a bank
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