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    PAN, Aadhaar must for cash deposits or withdrawals above Rs 20 lakh from May 26

    PAN, Aadhaar must for cash deposits or withdrawals above Rs 20 lakh from May 26

    PAN, Aadhaar must for cash deposits or withdrawals above Rs 20 lakh from May 26
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    By CNBCTV18.COM IST (Updated)

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    PAN and Aadhaar will be a must for cash withdrawal or withdrawals aggregating to Rs 20 lakh or more in a financial year, in one or more accounts of a person with a banking company or a co-operative bank or a post office

    Furnishing a permanent account number (PAN) or Aadhaar will be mandatory from May 26, 2022, if the cash deposit exceeds Rs 20 lakh or more in a financial year, a notification from the Central Board of Direct Taxes (CBDT) said.
    Besides, PAN and Aadhaar will be a must for cash withdrawal or withdrawals aggregating to Rs 20 lakh or more in a financial year, in one or more accounts of a person with a banking company or a co-operative bank or a post office
    Also, PAN and Aadhaar will be mandatory for opening a current account or cash credit account by a person with a banking company or a co-operative bank, or a post office.
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    "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," CBDT notification said.
    The permanent account number or Aadhaar number along with demographic information or biometric information of an individual shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for the purposes of authentication referred to in section 139A, CBDT added.
    Currently, PAN and Aadhaar are interchangeable for income tax purpose. An assessee needs to mention his/her PAN in all communications with the I-T department and while entering into specified financial transactions.
    However, there can be situations where a person entering into high-value transactions, such as the purchase of foreign currency or huge withdrawal from banks, does not possess a PAN. The Finance Act, 2019, has provided for interchangeability of PAN with Aadhaar.
    It has been provided that every person who is required to furnish or quote his PAN under the Income Tax Act, and who has not been allotted a PAN but possesses the Aadhaar number, may furnish the biometric ID in lieu of PAN.
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