Alert: Pan Card is now mandatory for cash transactions above the specified limit of…
PAN/Aadhaar mandatory for cash transactions of Rs 20 lakh or more
Now you will have to furnish your PAN (Permanent Account Number)/Aadhaar if you wish to make cash transactions like cash deposits or cash withdrawals of Rs 20 lakh or more in a Financial year. The government has made PAN/Aadhaar quoting compulsory for cash deposits and cash withdrawals of Rs.20 lakh or more in a financial year.
Earlier, there were no such requirements for cash withdrawals, there was a rule only for deposits of cash in a bank account but now Income Tax Department is certainly becoming stringent regarding cash transactions.
- The government has also made it mandatory to mention PAN or Aadhar while opening a current account, or cash credit account with a bank, including a cooperative bank.
- People whose bank account is already linked with PAN will also have to follow the rules at the time of such transactions.
For cash deposits in all the accounts with a bank, including cooperative banks, aggregating to
Rs 20 lakh or more, furnishing of PAN is mandatory. For cash withdrawals from all the accounts with the
banks, including cooperative banks, aggregating to Rs 20 lakh or more, rules remain the same as for deposits.
That means if a person intends to enter into such transactions, they have to apply for a PAN card, at least seven days in advance.
By initiating this rule, the government wants to minimize cash transactions.
Author – Shreya Singh