CBDT mandates PAN for cash deposit & withdrawal of Rs. 20 lakh or more

The Central Board of Direct Taxes (CBDT) vide notification dated 10th May, 2022 mandates PAN for cash deposit & withdrawal of Rs. 20 lakh or more.

Text of the Notification is Given Below:

G.S.R. 346(E).––In exercise of the powers conferred by clause (vii) of sub-section (1), sub-section(6A) of section 139A, and clause (ab) of Explanation to the said section read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-

1. Short title and commencement.–– (1) These rules may be called the Income–tax (Fifteenth Amendment) Rules, 2022.

(2) Save as otherwise provided in these rules, they shall come into force after the expiry of fifteen days from the
date of their publication in the Official Gazette.

2. In the Income-tax Rules, 1962,––

(a) in rule 114, in sub-rule (3), after clause (vi), the following clause shall be inserted, namely:—

“(vii) in the case of a person who intends to enter into the transaction prescribed under clause (vii) of sub-section (1) of section 139A, at least seven days before the date on which he intends to enter into the said transaction.”;

(b) after rule 114B, the following rule shall be inserted, namely:―

“114BA. Transactions for the purposes of clause (vii) of sub-section (1) of section 139A.–– The following shall be the transactions for the purposes of clause (vii) of sub-section (1) of section 139A, namely:—

(a) cash deposit or deposits aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a 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 a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) 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 to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office.”;

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