PAN, Aadhaar mandatory for transactions of Rs 20 lakh or more from May 26

New Delhi: Banking rules in India are all set to make a big rule change from tomorrow, May 26. Now, bank customers will have to quote their Permanent Account Number (PAN) and Aadhaar card number to deposit or withdraw Rs 20 lakh or more. in a financial year. Also, as per the latest changes announced by the Central Board of Direct Taxes (CBDT) earlier this month, you will now need to submit the above mentioned documents to open a current account. The new rules will come into effect from May 26, 2022.

In an official notification, the CBDT said production of PAN or biometric Aadhaar would be mandatory for making such high value deposits or withdrawals from banks, or opening a current account or cash credit account with a bank or post office, in a financial year.

“Term transactions involve deposits/withdrawals of an amount of ₹20 lakh or more in a financial year through one or more bank accounts. Account(s) not only in commercial banks, but also in co-operative banks or post offices,” read the notification issued on May 10, 2022.

In addition, individuals need to apply for a PAN card at least seven days prior to making such transactions.

Commenting on the move, AKM Global Tax Partner Sandeep Sehgal had told PTI that it would bring more transparency in financial transactions where banks, post offices and cooperatives would be required to report deposits and withdrawal transactions totaling Rs 20 lakh. will be required. more in one financial year. Read also: ‘No petrol at station, no cash in ATM’: Ex-Pakistan batsman shares common man’s pain

“Further, the mandatory condition of obtaining PAN for deposits and even for withdrawals will help the government to trace the movement of cash in the system. Overall, it will enable doubtful cash deposits and withdrawals with pre-existing TDS. will tighten the entire process of the Income Tax Act, 1961 under section 194N,” Sehgal told the agency. Read also: Indian economy sees 9.2% growth in FY12 on buoyancy in rural sector, growth in credit demand: BoB report

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