In a notification issued on May 10, 2022, the federal government has come out with new guidelines particularly pertaining to these making monetary transactions with no Permanent Account Number (PAN) or Aadhaar. The Central Board of Direct Taxes has made new guidelines, referred to as the Income–tax (Fifteenth Amendment) Rules, 2022.
As per the brand new guidelines, furnishing PAN or Aadhaar can be obligatory within the following transactions:
(a) Cash deposit or deposits aggregating to Rs 20 lakh or extra in a monetary 12 months, in a number of account of an individual with a banking firm or a co-operative financial institution or a Post Office;
(b) money withdrawal or withdrawals aggregating to Rs 20 lakh or extra in a monetary 12 months, in a number of account of an individual with a banking firm or a co-operative financial institution or a Post Office;
(c) opening of a present account or money credit score account by an individual with a banking firm or a co-operative financial institution or a Post Office
Shailesh Kumar, Partner, Nangia & Co LLP says, “The Government has constantly been striving to increase its taxpayer base to be able to bring such people under the tax net who may be entering into large transactions but do not hold a PAN. In today’s scenario it may be necessary for a person to hold a valid PAN basis the nature of transaction(s) entered by them even though the person may or may not have taxable income. The intent of the circular is based on this view. Once such person quotes the PAN it will be easier for the tax authorities to track the transactions. It may eventually become difficult where a person tries to avoid filing return of income.”
The everlasting account quantity or Aadhaar quantity together with demographic info or biometric info of a person shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the particular person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for the needs of authentication referred to in part 139A.
Source: www.financialexpress.com”