New Regulation for Cash Deposits: Huge News! new tax department regulations on cash deposit withdrawals, check promptly if not...

 

Be cautious if you do transactions up to Rs. 20 lakh without a PAN card and an Aadhaar card since the Income Tax Agency is monitoring you.


Financial transactions will be exceedingly challenging without PAN Aadhaar (PAN-AADHAR). The government has imposed very severe regulations on cash transactions that do not include PAN and Aadhaar. Those who conduct financial transactions without a PAN or Aadhaar would be impacted by the new rule introduced by the Income Tax Department. The new regulations stipulate that in order to deposit or withdraw cash valued at Rs. 20 lakh or more from a bank or post office, PAN and Aadhaar must be provided in a financial year.


new tax agency regulations regarding cash deposit withdrawal

In fact, the Income Tax (Fifteenth Amendment) Regulations, 2022, whose notification was released on May 10, 2022, have been updated by the Central Board of Direct Taxes (CBDT). In accordance with the new regulation, PAN and Aadhaar must be provided when such transactions are made. , where

1. When cash deposits of Rs. 20 lakh or more are made in one or more accounts at a banking organisation, co-operative bank, or post office, PAN Aadhaar must be provided.

2. In addition, when cash withdrawals of Rs. 20 lakh or more are made from one or more bank accounts, cooperative banks, or post offices in a fiscal year, PAN and Aadhaar must also be provided.
3. Moreover, a PAN and Aadhaar number must be provided when opening a current account or cash credit account at any bank, cooperative bank, or post office.

This will aid in reducing tax fraud.

Actually, by taking this action, the government hopes to include a growing number of people who frequently transact in cash but do not have PAN cards or file income tax returns in the tax system.

The tax agency is aware of several persons who open and close bank accounts with more than 20 lakhs in a single year yet fail to file income tax returns.

When someone is detected making transactions above this amount, the Income Tax would be able to quickly identify such transactions and tax evasion if PAN is made required for transactions of 20 lakhs or more. Also, it will aid in avoiding