To withdraw or deposit so much money in a year from the post office and bank, these documents have to be submitted, know the details

New Delhi: If you withdraw or deposit Rs 20 lakh from your account in any financial year or open a current account, you will have to provide PAN number or Aadhaar number. The government has made it mandatory. The Central Board of Direct Taxes (CBDT) has issued a notification stating that if a person makes […]
 


To withdraw or deposit so much money in a year from the post office and bank, these documents have to be submitted, know the details

New Delhi: If you withdraw or deposit Rs 20 lakh from your account in any financial year or open a current account, you will have to provide PAN number or Aadhaar number. The government has made it mandatory. The Central Board of Direct Taxes (CBDT) has issued a notification stating that if a person makes high value deposits or withdrawals during a financial year or at a bank or post office, it will be mandatory to provide him with a Permanent Account Number (PAN) or Aadhaar. . number. Opens a current account or cash credit account.

AKM Global Tax Partner Sandeep Sehgal said that this move of CBDT will bring transparency in financial transactions. Sehgal said, banks, post offices and cooperatives will have to report transactions of Rs 20 lakh or more per person in a financial year. The government will know where the cash is going in the system. Overall, this will help prevent suspicious cash deposits and withdrawals. TDS is already provided under section 194N of the Income Tax Act.

For a particular financial transaction, the assessee has to share his/her PAN with the Income Tax Department. However, there may be situations where a person is doing a high value transaction, such as buying foreign currency or withdrawing high value from a bank, and does not have a pen. Aadhaar can also be given in place of PAN as per the Finance Act 2019.

Those who are required to provide PAN under the Income Tax Act and who do not have PAN can provide their Aadhaar Biometric ID. Shailesh Kumar, partner, Nangia & Co LLP, said if the person carrying out such transactions mentions PAN, it will be easier for the tax authorities to track such transactions.