Bank a/c opening, Cash deposit, withdrawal rules changing from today, May 26 – Check details here

 


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.

New Delhi: From today, May 26, it has become mandatory to quote either PAN or Aadhaar if you want to deposit or withdraw over Rs 20 lakh in a financial year. The same rule applies for opening of a current account in banks too.

The Central Board of Direct Taxes (CBDT) had in a notification said that it will be mandatory to furnish Permanent Account Number (PAN) or 12 digit Aadhaar for 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 from May 26.

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.


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