Home Business Quoting PAN or Aadhaar should for deposit, withdrawal of Rs 20 lakh, present A/C opening

Quoting PAN or Aadhaar should for deposit, withdrawal of Rs 20 lakh, present A/C opening

Quoting PAN or Aadhaar should for deposit, withdrawal of Rs 20 lakh, present A/C opening

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NEW DELHI: The federal government has made it obligatory to cite both PAN or Aadhaar for depositing or withdrawing over Rs 20 lakh in a monetary 12 months or opening of a present account.
The Central Board of Direct Taxes (CBDT), in a notification, stated furnishing the Everlasting Account Quantity (PAN) or biometric Aadhaar shall be obligatory for such high-value deposits or withdrawals from banks in a monetary 12 months, or opening of a present account or money credit score account with a financial institution or publish workplace.
Commenting on the transfer, AKM World Tax Associate Sandeep Sehgal stated this shall carry in additional transparency to monetary transactions the place banks, publish places of work and co-operative societies could be required to report the transactions of deposits and withdrawals aggregating to Rs 20 lakh or extra in a monetary 12 months.
“Additional, the obligatory situation of acquiring PAN for deposit and even for withdrawals would assist the federal government in tracing the motion of money within the system. All in all, this is able to tighten your complete strategy of suspicious money deposits and withdrawals with the already current TDS provision u/s 194N beneath the Revenue-tax Act, 1961,” Sehgal stated.
At present, PAN and Aadhaar are interchangeable for revenue tax objective.
An assessee wants to say his/her PAN in all communications with the I-T division and whereas getting into into specified monetary transactions.
Nevertheless, there might be conditions the place an individual getting into into high-value transactions, akin to buy of international forex or enormous withdrawal from banks, doesn’t possess a PAN.
The Finance Act, 2019, has supplied for interchangeability of PAN with Aadhaar.
It has been supplied that each one who is required to furnish or quote his PAN beneath the Revenue Tax Act, and who has not been allotted a PAN however possesses the Aadhaar quantity, could furnish the biometric ID in lieu of PAN.
Nangia & Co LLP Associate Shailesh Kumar stated as soon as such individual quotes the PAN it will likely be simpler for the tax authorities to trace the transactions.
“The federal government has consistently been striving to extend its taxpayer base to have the ability to carry such folks beneath the tax internet who could also be getting into into giant transactions however don’t maintain a PAN,” Kumar stated.
It could ultimately turn out to be troublesome the place an individual tries to keep away from submitting return of revenue, he added.

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