From today, May 26, it has become required to quote either PAN or Aadhaar if you have any desire to deposit or withdraw over Rs 20 lakh in a monetary year. A similar rule applies for opening of an ongoingaccount in banks as well.
The Central Board of Direct Taxes (CBDT) had in a notice said that it will be compulsory to outfit Permanent Account Number (PAN) or 12 digit Aadhaar for high-esteem stores or withdrawals from banks in a monetary year, or opening of an ongoing account or cash credit account represent a bank or post office from May 26.
Now, PAN and Aadhaar are compatible for income tax purpose. An assessee needs to specify his/her PAN in all correspondences with the I-T division and keeping in mind that going into determined monetary exchanges.
Be that as it may, there can be circumstances where an individual going into high-value exchanges, like acquisition of unfamiliar cash or gigantic withdrawal from banks, doesn’t have a PAN. The Finance Act, 2019, has given to compatibility of PAN with Aadhaar.
It has been given that each individual who is expected to outfit or cite his PAN under the Income Tax Act, and who has not been distributed a PAN yet has the Aadhaar number, may outfit the biometric ID in lieu of PAN.
