Demonetisation: Now, PAN required if combined cash deposits exceed Rs 2.5 lakh till December 30
Demonetisation:
Now, PAN required if combined cash deposits exceed Rs 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 the
PAN. Till now, 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. But a circular issued on Tuesday 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
multiple batches of less than Rs 50,000 each and escape mentioning the PAN.
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 of cash
deposited in other bank accounts.
Courtesy : The Economic Times