Central Board of Direct Taxes amends Income Tax Rules, 1962 to mandate PAN for cash deposit/withdrawal of INR 20 lakhs or more
Central Board of Direct Taxes (CBDT) has issued Notification No. 53/2022 dated 10th May, 2022 and amended Rule 114 of the Income Tax Rules, 1962 to notify certain transactions for making application for allotment of Permanent Account Number (PAN).
Key Points of the Notification are :
1) New rule 114BA has been inserted to specify the list of transaction for which application for allotment of PAN has to be made which are as follows:
a. cash deposit or deposits aggregating to INR 20 lakhs or more in a financial year, in one or more account of a person with a banking company or a co-operative bank or a Post Office;
b. cash withdrawal or withdrawals aggregating to INR 20 lakhs or more in a financial year, in one or more account of a person with a banking company or a co-operative bank or a Post Office;
c. opening of a current account or cash credit account by a person with a banking company or a co-operative bank or a Post Office.
2) In sub-section 3 of Rule 114 a new clause (vii) has been inserted, to provide that if any persons enter into any of the above mentioned transaction has to make application for allotment of PAN at least 7 days before the date on which he intends to enter into the said transaction.
3) Rule 114BB has been inserted to specify that every person shall, at the time of entering into any of the above mentioned transaction, quote his PAN or Aadhaar number, as the case may be, in documents pertaining to such transactions, and every person, who receives such documents, shall ensure that the said number has been duly quoted and authenticated.
