Now, PAN required if combined cash deposits exceed INR 2.5 lakh till December 30
The government has announced a new rule to prevent people from making multiple cash deposits in their bank accounts without quoting their PAN card number. Till date, the limit for cash deposit without PAN was Rs 50,000 per transaction. A lot of people were depositing less than Rs 50,000 per day to escape the PAN provision.
A circular issued yesterday says deposits made between 9 Nov and 30 Dec 2016 will require a PAN if the combined sum exceeds Rs 2.5 lakh. This clarifies the misconception that one can deposit cash in tranches of less than Rs 50,000 and escape mentioning the PAN.
ALSO READ: SBI cleans up its balance sheets by writing off loans of 63 willful defaulters, including Vijay Mallya
The CBDT has also made changes in the (AIR) Annual Information Return rules. Till now, banks and post office branches were supposed to report to the tax department if an individual made cash deposits of Rs 10 lakh in a year. During the period 9 November to 30 December, this limit has been lowered to Rs 2.5 lakh. If the cash deposits exceed this limit, the bank or post office will automatically report it to the tax department. For current accounts, the threshold limit for cash deposits between 9 November and 30 December will be Rs 12.5 lakh.
The rule applies to all bank accounts of the individual, though it is not clear how banks will be able to capture information on cash deposited in other bank accounts.
Popular on BI
- Billionaire investor Mark Mobius says he's been able to get his money out of China, but investing in the country is still a 'dilemma' amid national security laws
- The Carnival cruise passenger who went overboard and remains missing was on his first cruise and it became his 'happy place,' his fiancée said
- My fiancé and I picked out my engagement ring together before he proposed, and I don't regret missing out on the surprise
- Attractiveness of gold depends on US Fed's moves, say analysts
- Coal India’s ₹4,000 crore offer for sale subscribed 4x times
- Nvidia's Jensen Huang started with a $10 million failure before shifting gears to become a $1 trillion company
- Meet the top Nifty50 performers in FY23
- Apple to declare the 12-inch MacBook as obsolete on June 30