Banking rules change: PAN or Aadhaar required for deposit and withdrawal of more than ₹ 20 lakh in a year
The Central Board of Direct Taxes ie CBDT has recently changed the rules related to income tax. Under this, if you deposit or withdraw Rs 20 lakh or more in a year in a bank or post office, then PAN card or Aadhaar has been made mandatory for this. The new rules will come into effect from May 26.
CBDT said in the notification that this rule will be applicable to all accounts opened in a bank, post office or co-operative society.
No limit yet
However, till now the limit was not fixed for deposit or withdrawal of cash in the year on which PAN or Aadhaar is required. However, this rule was definitely applicable on withdrawal or deposit of 50 thousand rupees or more in a day.
Will help in preventing tax evasion
According to a news in Moneycontrol, Sandeep Sehgal, Tax Partner, AKM Global, said that this move is expected to bring more transparency in financial transactions. Also, due to this rule, it will now be mandatory to give information about transactions of more than Rs 20 lakh to banks, post offices or co-operative societies. This will help in preventing tax evasion.
