From today a big change is happening in banking. Under this change, it will now be mandatory for customers to give their PAN or Aadhar card number for cash withdrawal / deposit of Rs 20 lakh or more in a financial year.
The fresh guidelines will be applicable not only for commercial banks but also for co-operative banks or post offices.
The changed rule was announced by the Central Board of Direct Taxes (CBDT) on May 10 by issuing a notification.
Apart from this, a person is required to apply for PAN at least seven days before doing any of the above transactions.
The reason for implementing this new rule is to prevent unaccounted financial transactions happening through cash.
PAN Card Mandatory for More Transactions
1. Quoting PAN is mandatory for filing Income Tax Returns or for initiating any correspondence with Income Tax authorities.
2. PAN card is required to open a bank or demat account or get a credit or debit card.
3. When investing more than Rs 50,000 in mutual funds, debentures or bonds, PAN details are required.
4. PAN is also required to pay an aggregate amount exceeding Rs 50,000 as life insurance premium to the insurer in a financial year.
5. Requirement of PAN card for cash deposits exceeding Rs. 50,000 or fixed deposits exceeding Rs. 50,000 during any single day during a financial year or Rs. 5 lakhs during a financial year. is needed. 6. It is also necessary to provide PAN information while selling or buying any motor vehicle or vehicle other than two wheelers. 7. PAN is required for payment for travel to any foreign country or for purchase of any foreign currency at any one time.