The Government has taken a number of initiatives to combat unauthorised and unreported cash transactions. For big cash deposits in one or more banks within a fiscal year, the government has increased the cash withdrawal cap and made PAN cards and Aadhar cards mandatory. In order to deposit a substantial sum, you must now present your PAN card and Aadhar card. Additionally, a provision has been included for severe penalties for paying or receiving cash in excess of the allowed amount.
Bank Deposits or Withdrawals of more than Rs 20 lakh, it is now required under the new regulations to give PAN or Aadhaar. The government issued a notification on May 10, 2022, putting these regulations into effect. Under the Income Tax (15th Amendment) Rules, 2022, the Central Board of Direct Taxes (CBDT) has issued new regulations. Following the adoption of these new regulations, if an individual deposits a total of 20 lakh rupees or more in one or more accounts with any banking organisation, co-operative bank, or post office, he will automatically receive a PAN and an Aadhar card. Giving is now a requirement.
Important Things to keep in Mind
- Cash transactions over Rs 2 lakh are illegal under income tax rules. Therefore, refrain from making too many cash transactions or you risk receiving a fine.
- Above Rs. 2 lakh, the government forbids receiving cash. Therefore, even from your close family, you are not permitted to collect more than Rs 2 lakh in cash in a single day.
- A single donor’s total monetary donation cannot exceed Rs 2 lakh at any given moment. Anyone who does so will be subject to a fine equivalent to the amount received.
- Never purchase health insurance outright. The taxpayer will not be qualified for the section 80D deduction if he pays the insurance premium in cash.
- The maximum amount of cash that can be used in a property transaction is also Rs 20,000. The upper limit is simply two lakh rupees if the vendor pays in advance.
Know the Latest Modifications to India’s Bank Cash Deposit Rules
Mandatory for Withdrawals: Pan Card & Aadhar Card
Similar to deposits, withdrawals of $20,000 or more within one fiscal year also require submission of Pan Card and Aadhar Card information. It’s crucial to submit these information or create a current account or cash credit account with a bank or post office as soon as possible, starting on May 26.
PAN and Aadhar cards are required for Deposits
According to the new bank cash deposit regulations, PAN and Aadhar card information must be provided when depositing $20,000,000 or more in one fiscal year in one or more accounts at banks or post offices. You must provide these data in order to deposit cash; otherwise, you will not be permitted to do so. There are also provisions for severe fines for paying or receiving more cash than is authorised.
What would happen if you didn’t register for a Pan Card?
If someone wants to trade more than 50,000 rupees in a day or more than 20 lakh rupees in a financial year, they must apply for a Pan Card Registration at least one week in advance. You won’t be allowed to do business until and until you register your Pan Card. In some instances of transactions, you can, however, also use a biometric ID in place of the PAN.