PAN or Aadhaar mandatory for deposits, withdrawals of ₹20 lakh or more in a year

The government has made it mandatory for individuals to quote their PAN or Aadhaar number for depositing or withdrawing ₹20 lakh or more in a financial year.

In a notification dated May 10, the Central Board of Direct Taxes (CBDT) said it has made the rules to amend the Income-tax Rules, 1962, and added 114BA and 114BB clauses while amending Rule 114.

According to the CBDT, furnishing PAN or Aadhaar is mandatory for ₹20 lakh or more 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.

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For those who don’t have a PAN number, they need to apply for the same seven days before entering into transactions – ₹50,000 a day or ₹20 lakh in a financial year.

“Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number (PAN) or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated,” the notification stated.

The above rule shall be inserted after the expiry of 60 days from the date on which this notification is published in the Official Gazette, the CBDT said.

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According to the notification PAN or Aadhaar needs to be quoted for – “Cash deposit or deposits aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with, — (i) A banking company or a coperative bank; (ii) Post Office

“Cash withdrawal or withdrawals aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with, — (i) A banking company or a co-operative; (ii) Post Office

“Opening of a current account or cash credit account by a person with, — (i) A banking company or a co-operative bank; (ii) Post Office.”

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“The PAN or Aadhaar number along with demographic information or biometric information of an individual shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for the purposes of authentication referred to in section 139A.

“Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall lay down the formats and standards along with procedure for authentication of permanent account number or Aadhaar number,” the notification read.