Wednesday, May 18, 2022
Home Business Quoting PAN or Aadhaar must for deposit/withdrawal of Rs 20 lakh, current...

Quoting PAN or Aadhaar must for deposit/withdrawal of Rs 20 lakh, current A/C opening


The authorities has made it obligatory to cite both PAN or Aadhaar for depositing or withdrawing over Rs 20 lakh in a monetary yr or opening of a present account.

The Central Board of Direct Taxes (CBDT), in a notification, mentioned furnishing the Permanent Account Number (PAN) or biometric Aadhaar will likely be obligatory for such high-value deposits or withdrawals from banks in a monetary yr, or opening of a present account or money credit score account with a financial institution or publish workplace.

Commenting on the transfer, AKM Global Tax Partner Sandeep Sehgal mentioned this shall deliver in additional transparency to monetary transactions the place banks, publish places of work and co-operative societies can be required to report the transactions of deposits and withdrawals aggregating to Rs 20 lakh or extra in a monetary yr.

“Further, the mandatory condition of obtaining PAN for deposit and even for withdrawals would help the government in tracing the movement of cash in the system. All in all, this would tighten the entire process of suspicious cash deposits and withdrawals with the already present TDS provision u/s 194N under the Income-tax Act, 1961,” Sehgal mentioned.

Currently, PAN and Aadhaar are interchangeable for earnings tax goal.

An assessee wants to say his/her PAN in all communications with the I-T division and whereas coming into into specified monetary transactions.

However, there could be conditions the place an individual coming into into high-value transactions, corresponding to buy of international foreign money or enormous withdrawal from banks, doesn’t possess a PAN.

The Finance Act, 2019, has supplied for interchangeability of PAN with Aadhaar.

It has been supplied that each one who is required to furnish or quote his PAN underneath the Income Tax Act, and who has not been allotted a PAN however possesses the Aadhaar quantity, might furnish the biometric ID in lieu of PAN.

Nangia & Co LLP Partner Shailesh Kumar mentioned as soon as such particular person quotes the PAN will probably be simpler for the tax authorities to trace the transactions.

“The government has constantly been striving to increase its taxpayer base to be able to bring such people under the tax net who may be entering into large transactions but do not hold a PAN,” Kumar mentioned.

It might ultimately grow to be troublesome the place an individual tries to keep away from submitting return of earnings, he added.





Source link

RELATED ARTICLES

Ruchi Soya to acquire Patanjali Ayurved’s food retail business for Rs 690 crore; rename itself as ‘Patanjali Foods’

Ruchi Soya Industries on Wednesday introduced it is going to purchase Patanjali Ayurved’s meals retail enterprise for Rs 690 crore. The acquired meals...

Gold, Silver Prices Today: Gold slips Rs 296/10 gm, silver declines Rs 341/kg

Gold, Silver Rates Today News Updates: Prices of gold and silver opened decrease in the important thing spot markets of the nation on...

S&P cuts FY23 India growth forecast to 7.3% on rising inflation, Russia-Ukraine war

S&P Global Ratings on Wednesday minimize India’s development projection for the present fiscal to 7.3 per cent from 7.8 per cent earlier on...
- Advertisment -

Most Popular

Mahesh Babu is ‘overwhelmed’ by Sarkaru Vaari Paata’s ‘blockbuster success’

Telugu actor Mahesh Babu on Wednesday expressed his gratitude to followers for making his newest film Sarkaru Vaari Paata a “blockbuster success”. He...

Tesla to host second artificial intelligence day in August

Tesla Inc high boss Elon Musk mentioned on Tuesday the electric-car maker will host its second synthetic intelligence day on Aug. 19, with...

7 years in jail, Indrani Mukerjea was often in news, but not only for Sheena Bora’s death case

For almost seven years since her arrest in 2015 for the alleged murder of her daughter Sheena Bora, former media govt Indrani Mukerjea...

Three takeaways from Tuesday’s US primary elections

The match-ups for a number of high-profile US congressional and gubernatorial races in November’s midterm elections started to take form in Pennsylvania and...

Recent Comments