By releasing a notification on May 10, 2022, the government has put these guidelines into effect. PAN Card and Aadhar Card are now required for big cash deposits in one or more banks throughout a fiscal year.Similarly, the government has established a cash transaction restriction.
The national government has taken a number of initiatives to combat unlawful and unaccounted-for cash transactions. The government has changed the cash withdrawal limit and made a PAN card and an Aadhar card required for depositing substantial sums of money in one or more banks in a fiscal year.
This implies that when making a significant deposit, you must now produce your PAN card and Aadhar card. Not only that, but there is also a provision for hefty fines for paying or receiving cash in excess of the allowed limit.
The new laws make it essential to produce PAN or Aadhaar when depositing or withdrawing more than Rs 20 lakh from a bank. By releasing a notification on May 10, 2022, the government has put these guidelines into effect. The Income Tax (15th Amendment) Rules, 2022 have been amended by the Central Board of Direct Taxes (CBDT). Following the adoption of these new laws, if a person deposits a total of 20 lakh rupees or more in one or more accounts in any banking business, co-operative bank, or post office in a fiscal year, he would be issued a PAN and an Aadhar card. Giving has become a requirement.
Those who do not have a PAN must apply for one at least seven days before making any transaction worth more than Rs 50,000 in a single day or more than Rs 20 lakh in a fiscal year. Similarly, if a person withdraws a total of 20 lakh rupees or more from one or more accounts of any banking firm, co-operative bank, or post office in a fiscal year, he must provide a PAN or Aadhar card.
Keep the following in mind.
Income tax regulations forbid cash transactions in excess of Rs 2 lakh for any purpose.
As a result, avoid excessive cash transactions or you may face a fee.
The government restricts taking more than Rs 2 lakh in cash. As a result, you cannot receive more than Rs 2 lakh in cash in a single day, even from close family.
A single donor’s monetary donation cannot exceed Rs 2 lakh at any given moment. Anyone who breaches this may be penalised the amount received.
Do not pay cash for health insurance. The taxpayer will not be entitled for the section 80D deduction if he pays the insurance premium in cash.
The maximum cash authorised in a property deal is also Rs 20,000. The maximum limit has been set as just Rs. 2 lacs, if a seller is in advance.