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Government Changed to Bank Deposit Transactions Rules Now Mandatory PAN Aadhaar for Cash Deposits – India Business News

The rules for bank deposit transactions have been changed: The government has made Aadhaar or Permanent Account Number (PAN) mandatory to open checking accounts as well as deposit or withdraw more than 20 thousand Indian rupees in a financial year. In a notice, the Central Board of Direct Taxes (CBDT) said it would be mandatory to provide Aadhaar’s PAN or biometric verification to handle large sums of money with banks in a financial year. Apart from this, it will also be necessary to open a checking account or a cash credit account in any bank or post office.

What do the experts say?
Sandeep Sejal, AKM Global’s tax partner, hopes the move will bring more transparency into financial transactions, saying it will make it mandatory for banks, post offices or cooperatives to report transactions over 20,000 rupees in a fiscal year.

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“This will help the government track the movement of liquidity in the financial system,” Segal said. This will make the process of suspicious cash deposits and withdrawals more rigorous. It is necessary to provide a PAN for all work related to the Income Tax Department. But at the time of transaction with a large amount of cash, if a person does not have a PAN, he can use Aadhaar.

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What is the rule?
As per the rules, if a person needs to provide PAN information but does not have a PAN number, they can provide biometric Aadhaar identification. Shailesh Kumar, partner at Nangia & Co, said that once the PAN is provided at the time of the transaction, it will be easier for tax authorities to track the transaction.

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