The cash withdrawal and deposit system in the country has undergone a major change from today, i.e. Thursday, May 26, as it is mandatory for citizens to enter their PAN card or Aadhaar card number for cash withdrawals / deposits. ₹20 lakhs or more in a single financial year.
Also Read | PAN, Aadhaar is mandatory for above cash deposit or withdrawal ₹20 lakhs
The new rule was announced by the Central Board of Direct Taxes (CBDT) in a notification dated May 10. ₹20 lakh or more in a financial year through one or bank accounts. Account(s) not only in a commercial bank, but also in a cooperative bank or post office,” the notification read.
Fresh guideline also applies Opening of a current bank account or cash credit account by a person with a banking company or a cooperative bank or a post office.
Additionally, a person has to apply for PAN at least seven days before doing any of the transactions mentioned above.
Meanwhile, the CBDT notification requires PAN or Aadhaar along with demographic or biographical information of a person to be submitted to the Director General of Income Tax (Systems) or an official authorized for the purpose of authentication as mentioned in Section 139(A).
The Principal Director General, or Director General, or duly authorized, lays down the format and criteria along with the procedure for PAN or Aadhaar authentication.