News & Media 11th May 2022

PAN, Aadhaar now mandatory for cash deposits, withdrawals above this amount in banks, post office

Authors

Rahul Charkha Partner | Pune

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The government has made quoting of PAN or Aadhaar number mandatory if the cash deposits and withdrawals in a financial year exceeds Rs 20 lakh and in case of opening of current account or cash credit account with a bank. The Central Board of Direct Taxes (CBDT) has issued a notification on May 10, 2022 for the same. The new rules will be effective from May 26, 2022.

Against this backdrop, Rahul Charkha, Partner, Economic Laws Practice (ELP) has been quoted by The Economic Times in their article titled ‘PAN, Aadhaar now mandatory for cash deposits, withdrawals above this amount in banks, post office’. He says, “Prior to this notification, a bank official was required to ensure that individual undertaking such transactions have PAN. However, going forward, a bank official will be required to keep the PAN in bank’s records and inform the same to the Income tax department regarding such financial transactions. Further, new rules will be applicable not only to banks but also to post offices and co-operative society.”

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