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PAN to be Mandatory in More Transaction

Published on May 12, 2022
Current Context: PAN is mandatory for high-value transactions over Rs 20 lakh in an annum.
PAN to be Mandatory in More Transaction
  • A person must obtain and quote PAN when he enters into any High-value cash deposits.
  • A cash deposit (or deposits) aggregating to Rs 20 lakh or more in a financial year.
  • Having one or more accounts of a person with a banking company, a co-operative bank, or a post office will require PAN to be furnished.
  • According to new rules by the tax department, one needs to mention PAN details at the time of deposit and withdrawal.
  • CBDT notified amendments in Income Tax Rules, 1962.
  • The new rule will be applicable from May 26.
  • In the Budget for 2020, the Finance Ministry had introduced Tax Deducted at Source (TDS) on cash withdrawal in excess of Rs 20 lakh, and this amendment to the rule has been added for specific transactions.
  • Static Part: 
    • CBDT head Sangeeta Singh

Question:

Q.1 Central Board of Direct Taxes made mandatory PAN & Aadhar on withdrawal & deposit exceeding by how much amount in one financial year?
a. 35 lakh
b. 20 lakh
c. 75 lakh
d. 1 crore
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