PAN, Aadhaar a must for cash transactions above Rs 20 lakh a year

The Central Board of Direct Taxes (CBDT) said in a notification on May 10 to mandatorily quote either PAN or Aadhaar even to open a current account or cash credit account with a bank or post office. The main objective of the circular is to put a check on unaccounted financial transactions through the cash route.

Against this backdrop, Rahul Charkha, Partner at Economic Laws Practice (ELP) has been quoted by moneycontrol.com in their article titled ‘PAN, Aadhaar a must for cash transactions above Rs 20 lakh a year’. He says, “(The rules are) an effort by the government to combat the accumulation of black money and will help it in keeping a check on the circulation of cash in the economy. This will help the government track suspicious cash transactions in bank accounts that earlier went untapped due to the non-availability of PAN and conduct inquiries wherever required.”

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