New Delhi: The banking rules in India are set to introduce a major rule change from tomorrow, May 26. Now, bank customers will have to quote their Permanent Account Number (PAN) and Aadhaar card numbers for depositing or withdrawing Rs 20 lakh or more in a financial year. Also, you will now be required to furnish the above-mentioned documents for opening a current account, according to the latest changes that were announced by the Central Board of Direct Taxes (CBDT) early this month. The new rules will come into force on May 26, 2022.
In an official notification, CBDT said that producing PAN or biometric Aadhaar will be mandatory for such 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.
“The term transactions includes deposit/withdrawal of cash amounting to ₹20 lakh or more in a financial year through one or bank accounts. Account(s) not just with commercial bank, but even co-operative bank or post offices,” the notification which came out on May 10, 2022, read.
Moreover, individuals will be required to apply for a PAN card at least seven days before making such transactions.
Commenting on the move, AKM Global Tax Partner Sandeep Sehgal had told PTI this shall bring in more transparency to financial transactions where banks, post offices and co-operative societies would be required to report the transactions of deposits and withdrawals aggregating to Rs 20 lakh or more in a financial year. Also Read: ‘No petrol at station, no cash in ATM’: Former Pakistani batter shares pain of common man
“Further, the mandatory condition of obtaining PAN for deposit and even for withdrawals would help the government in tracing the movement of cash in the system. All in all, this would tighten the entire process of suspicious cash deposits and withdrawals with the already present TDS provision u/s 194N under the Income-tax Act, 1961,” Sehgal told the agency. Also Read: Indian economy seen growing 9.2% in FY22 on upbeat rural sector, uptick in credit demand: BoB report