New Delhi, July 18: In a move to clamp down on illegal and unaccounted cash transactions, the government had amended cash limit rules earlier in the year. Paying or receiving cash above the limits set is punishable by a steep penalty of up to 100 per cent of the amount paid or received.
Under the new rules and regulations set by the Central Board of Direct Taxes (CBDT), individuals looking to deposit more than ₹ 20 lakh a year will now need to present their PAN details and their Aadhaar card mandatorily.
While earlier there was a limit of ₹ 50,000 per day before individuals needed to furnish PAN details when depositing cash, the Income Tax department had set no annual limit.
But under the new rules, cash withdrawals and deposits of large sums of money in a single year across single or multiple banks need to be followed with PAN and Aadhaar details to create trackable details.
“Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated,” the CBDT said in its notice dated May 10.
Individuals who do not have a PAN need to apply for a PAN at least seven days before entering any transaction of above ₹ 50,000 a day or above ₹ 20 lakh a financial year.
