In a bid to put an end to the cases that endorse illegal money pooling activities and unaccounted cash transactions, the Central Board of Direct Taxes (CBDT) amended cash limit rules operational from May 26 onwards, quoting- ‘withdrawal or deposit of cash above ₹ 20 lakhs without PAN & Aadhar card details, will augment disciplinary action against the individual.
According to the new guidelines set by the CBDT, deposits over Rupees 20 lakh a year will seek a mandatory requisite from an individual to present their PAN and Aadhar card details.
The rules also stated that cash transactions (withdrawal and deposit) of large amounts of money in the current or a single year across the same or multiple banks will be strictly evaluated and tracked with the PAN and Aadhar details.
The CBDT in its released notice on May 10th 2022 clearly mentioned- “Every person shall, at the time of entering into a transaction as specified must quote his permanent account number or Aadhar number, as the case may be, in documents pertaining to such transactions, and every person, who receives such document as specified in set rules, shall ensure that the said number has been duly quoted and authenticated.”
Further, it also stated that individuals entering into any transaction above ₹ 20 lakhs in a financial year will have to show the mentioned essential details of PAN & Aadhar card failing which could lead to serious consequences. Those who don’t carry a PAN while having the said transaction limits will have to apply for a PAN at least seven days before carrying that transaction.
In recent years, financial fraud and illicit transactions have become an integrated part of any system. To minimise its risks and outcomes, the Income Tax Department in alignment with the Central Government departments has started updating and amending rules.
Earlier in the year, the government prohibited accepting cash valued more than ₹ 2 lakhs for any reason in a single day or even from close relatives will have to provide the reasons and details based on the essential documents-PAN/Aadhar card.
Cash transactions in day-to-day life have a crucial impact on the Indian economy, but it also becomes a part of an accumulation of unaccounted black or stashed money.
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