100s of titles, one news app for just $10 a month.
Dive Deeper:
Quoting PAN or Aadhaar must for deposit/withdrawal of ₹20 lakh, current A/C opening
Currently, PAN and Aadhaar are interchangeable for income tax purpose.
New PAN rule on cash deposits, withdrawals in bank, post offices explained
New PAN rule on cash deposits, withdrawals: PAN, Aadhaar now mandatory for cash deposits, withdrawals above this amount in banks,…
CBDT broadens scope of PAN requirements to track transactions
Cash deposit or withdrawal exceeding ₹2 million in one or more bank account or post office in a financial year…
PAN to be required in more transactions
Opening of a current account or cash credit account by a person with a bank or post office needs to…
One subscription that gives you access to news from hundreds of sites
Complete scrutiny of tax returns if information about evasion available: I-T dept
Under complete scrutiny, a detailed scrutiny of the return of income is carried out by tax officers to confirm the…
CASHe forays into wealthtech space with Sqrrl acquisition
The strategic acquisition will capture the combinational synergies of both platforms to create a seamlessly embedded industry-first lendtech, investtech, and…
Get all your news in one place
Latest Business news:
Musk: Twitter deal at lower price "not out of the question"
Musk has continued to express skepticism about the company's estimate of spam and fake accounts.
Read news from The Economist, FT, Bloomberg and more, with one subscription
Learn More
Netflix toys with live TV as sales slump
Would pouring more money into original content do anything to help Netflix's profits?
Michael 'Big Short' Burry Shorts Apple
Hedge fund investor Michael Burry bets against Apple.
Once a powerful symbol in Russia, McDonald's withdraws
Two months after the Berlin Wall fell, another powerful symbol opened its doors in the middle of Moscow: a gleaming…
U.S. backs U.N. push to get Ukraine grain back to global market
The United States supports efforts by U.N. Secretary-General Antonio Guterres to get Ukrainian grain back into the international marketplace amid…
From analysis to good news, read the world’s best news in one place
Reserve Bank hints at June interest rate hike, ASX rises despite economic worries
The Reserve Bank has left a strong hint that it will lift the cash rate target in June, while the…
Your Stocks, SPACs and Crypto Are Tumbling. Now What Do You Do?
Market experts offer their best suggestions for investors facing losses in popular – but sagging – asset classes.

Quoting PAN or Aadhaar must for deposit, withdrawal of Rs 20 lakh, current A/C opening

By PTI

NEW DELHI: The government has made it mandatory to quote either PAN or Aadhaar for depositing or withdrawing over Rs 20 lakh in a financial year or opening of a current account.

The Central Board of Direct Taxes (CBDT), in a notification, said furnishing the Permanent Account Number (PAN) or biometric Aadhaar will be mandatory for such high-value deposits or withdrawals from banks in a financial year, or opening of a current account or cash credit account with a bank or post office.

Commenting on the move, AKM Global Tax Partner Sandeep Sehgal said this shall bring in more transparency to financial transactions where banks, post offices and co-operative societies would be required to report the transactions of deposits and withdrawals aggregating to Rs 20 lakh or more in a financial year.

"Further, the mandatory condition of obtaining PAN for deposit and even for withdrawals would help the government in tracing the movement of cash in the system. All in all, this would tighten the entire process of suspicious cash deposits and withdrawals with the already present TDS provision u/s 194N under the Income-tax Act, 1961," Sehgal said.

Currently, PAN and Aadhaar are interchangeable for income tax purpose.

An assessee needs to mention his/her PAN in all communications with the I-T department and while entering into specified financial transactions.

However, there can be situations where a person entering into high-value transactions, such as purchase of foreign currency or huge withdrawal from banks, does not possess a PAN.

The Finance Act, 2019, has provided for interchangeability of PAN with Aadhaar.

It has been provided that every person who is required to furnish or quote his PAN under the Income Tax Act, and who has not been allotted a PAN but possesses the Aadhaar number, may furnish the biometric ID in lieu of PAN.

Nangia & Co LLP Partner Shailesh Kumar said once such person quotes the PAN it will be easier for the tax authorities to track the transactions.

"The government has constantly been striving to increase its taxpayer base to be able to bring such people under the tax net who may be entering into large transactions but do not hold a PAN," Kumar said.

It may eventually become difficult where a person tries to avoid filing return of income, he added.

What is inkl?
The world’s most important news, from 100+ trusted global sources, in one place.
Morning Edition
Your daily
news overview

Morning Edition ensures you start your day well informed.

No paywalls, no clickbait, no ads
Enjoy beautiful reading

Content is only half the story. The world's best news experience is free from distraction: ad-free, clickbait-free, and beautifully designed.

Expert Curation
The news you need to know

Stories are ranked by proprietary algorithms based on importance and curated by real news journalists to ensure that you receive the most important stories as they break.

Dive Deeper:
Quoting PAN or Aadhaar must for deposit/withdrawal of ₹20 lakh, current A/C opening
Currently, PAN and Aadhaar are interchangeable for income tax purpose.
New PAN rule on cash deposits, withdrawals in bank, post offices explained
New PAN rule on cash deposits, withdrawals: PAN, Aadhaar now mandatory for cash deposits, withdrawals above this amount in banks,…
CBDT broadens scope of PAN requirements to track transactions
Cash deposit or withdrawal exceeding ₹2 million in one or more bank account or post office in a financial year…
PAN to be required in more transactions
Opening of a current account or cash credit account by a person with a bank or post office needs to…
One subscription that gives you access to news from hundreds of sites
Complete scrutiny of tax returns if information about evasion available: I-T dept
Under complete scrutiny, a detailed scrutiny of the return of income is carried out by tax officers to confirm the…
CASHe forays into wealthtech space with Sqrrl acquisition
The strategic acquisition will capture the combinational synergies of both platforms to create a seamlessly embedded industry-first lendtech, investtech, and…
Get all your news in one place