PAN or Aadhaar made mandatory for cash deposits or withdrawals above Rs 20 lakh

The government has come out with new rules especially pertaining to those making financial transactions without a Permanent Account Number (PAN) or Aadhaar. The Central Board of Direct Taxes has made new rules, called the Income–tax (Fifteenth Amendment) Rules, 2022.

As per the new rules, furnishing PAN or Aadhaar will be compulsory in the following transactions:

(a) Cash deposit or deposits aggregating to Rs 20 lakh or more in a financial year, in one or more account of a person with a banking company or a co-operative bank or a Post Office;