Closer tabs on bank dealings
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 a current account or cash credit account .
The CBDT in a notification said the new rules will be effective from May 26, 2022.
Account(s) can be with a commercial bank, co-operative bank or with post office. The rule will be applicable for opening a current account or cash credit account with a banking company or a co-operative bank or post office during the year.
This circular makes it mandatory for a person to apply for PAN and quote PAN or Aadhar in the documents for the purpose of entering the following transactions:
Where cash deposits or withdrawals or aggregate cash deposits or withdrawals with a bank or post-office exceed Rs 20 lakh or more during a financial year in one or more accounts of the person. Opening of a current account or cash credit account with a bank or post-office.
“Once such person quotes the PAN it will be easier for the tax authorities to track the transactions. It may eventually become difficult where a person tries to avoid filing return of income,” Shailesh Kumar, partner, Nangia & Co LLP said.