Quoting of PAN for cash deposits aggregating to Rs 2.5 lakh or more in bank accounts after the withdrawal of old 500 and 1000 rupees notes is mandatory, the tax department said on Thursday. Quoting PAN is mandatory for cash deposit of over Rs 50,000 in a single day in scheduled or a cooperative bank. The additional requirement of quoting PAN has been made mandatory to avoid ill-gotten wealth or black money being converted into white during the 50-day window given for depositing the scrapped notes in bank accounts.
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“In addition to the existing requirement of quoting of PAN in respect of cash deposits in excess of Rs 50,000 in a day, quoting of PAN will now also be mandatory in respect of cash deposits aggregating to Rs 2.5 lakh or more during the period November 9, 2016 to December 30, 2016 as per an amendment notified by CBDT,” the tax department said in a statement.
This is in addition to existing provision making it mandatory for quoting of PAN for purchase of bank drafts or pay orders or banker’s cheques from banks in cash for an amount exceeding Rs 50,000 during a day.
Any time deposit with a bank or a post office as well as opening of an account (other than Jandhan or basic bank deposit account) also require PAN to be quoted.
The Central Board of Direct Taxes (CBDT) said it has already issued close to 25 crore PANs till date. “The persons requiring a PAN for complying with the requirements may do so by applying to the NSDL in a prescribed format with the necessary documentary proof,” it added.
The government had on November 8 announced withdrawing of old 500 and 1000 rupee notes in the biggest crackdown on black money, corruption and counterfeit currency.
As people thronged banks to deposit the defunct currency in their possession, the government placed restrictions to avoid ill-gotten wealth or black money to be converted using the window given to genuine holder to exchange or deposit the old currency in their bank accounts.
The government has asked banks and post offices to report to the I-T Department all deposits above Rs 2.50 lakh in savings accounts, and more than Rs 12.50 lakh in current accounts, made during the 50-day window.
As per a notification, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during the period November 9, to December 30, 2016.