Major Change For Transactions Of Rs 20 Lakh Or More; Check New Rules

New Delhi: Come May 26, the cash withdrawal and deposit system in India will undergo a major change.

It will henceforth be mandatory for citizens to quote their PAN card or Aadhaar number for cash withdrawals/deposits amounting to Rs 20 lakh or more in a financial year.

Central Board of Direct Taxes (CBDT) announced the new rule on May 10.

“The term transactions includes deposit/withdrawal of cash amounting to Rs 20 lakh or more in a financial year through one or more bank accounts. Account(s) not just with commercial bank, but even co-operative bank or post offices,” the notification stated.

The new guideline will be applicable for the opening of a current bank account or cash credit account in a banking company, co-operative bank or post office.

The CBDT notification stipulates that PAN or Aadhaar, with demographic or biographic information of an individual, shall be submitted to the principal director general of Income Tax (Systems), or director general of Income Tax (Systems), or an official authorised by either, for the purpose of authentication.