Cash Deposit New Rules: The government has made new rules regarding cash transactions in the bank or post office. According to the new rules, PAN and Aadhaar will be required for depositing cash of Rs 20 lakh or more in a bank or post office in any one financial year.
The Central Board of Direct Taxes (CBDT) has issued new rules under the Income Tax (15th Amendment) Rules, 2022. However, the new rules will be implemented from 26 May. But they have been notified.
Read the full notification of the new rules regarding cash transactions here
In which transactions PAN-Aadhaar will be necessary?
PAN-Aadhaar will be mandatory for depositing Rs 20 lakh in cash in one or more accounts in a financial year in a banking company, corporative bank, or post office.
It will also be necessary for cash withdrawal of 20 lakh rupees from any one or more accounts in a banking company, co-operative bank, or post office in a financial year.
PAN-Aadhaar will be mandatory for opening a current account or cash credit account in a banking company, co-operative bank or post office.
Pan card mandatory even for opening a current account
Now anyone has to show their PAN card to open a current account. At the same time, people whose bank account is already linked with PAN will also have to follow this rule at the time of transaction.
Keeping an eye on cash transactions
The government wants to bring more and more people under the tax net through this step. They do huge cash transactions, but they neither have a PAN card nor do they file income tax returns. While doing such transactions, the Income Tax Department will be able to trace such transactions on the PAN number easily.
