BANKING AND ECONOMY
If a bank customer, deposits and withdrawals the cash exceeding Rs.20 lakhs within a financial year in the bank account, he/she must provide the Permanent Account Number (PAN) or Aadhaar number. The objective behind the new rule is to increase the taxpayer base.
The notification of the new cash deposit and withdrawals rules called the Income-tax (Fifteenth Amendment) Rules, 2022 was issued by the Central Board of Direct Tax (CBDT) which will become effective from May 26 of this year.
The cash deposits/withdrawal includes all types of banks, cooperative banks, and post offices. It is also applicable to the current account or cash credit account with the bank, cooperative bank, or post office.
The finance ministry fixed the deadline to link PAN and Aadhar on March 31, 2023. Then, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Income Tax Act, 1961 for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.
As per the notification from the CBDT, those who have not linked their Aadhaar and PAN numbers so far will have to pay a penalty of Rs 500 if done within three months and Rs 1,000 if done beyond that.