The
government has announced a new rule to prevent people from making multiple cash
deposits in their bank accounts without quoting the PAN. Till now, the limit
for cash deposit without PAN was Rs 50,000 per transaction. A lot of people
were depositing less than Rs 50,000 per day to escape the PAN provision. But a
circular issued on Tuesday says deposits made between 9 Nov and 30 Dec 2016
will require a PAN if the combined sum exceeds Rs 2.5 lakh. This clarifies
the misconception that one can deposit cash in multiple batches of less than Rs
50,000 each and escape mentioning the PAN.
The
CBDT has also made changes in the (AIR) Annual Information Return rules. Till
now, banks and post office branches were supposed to report to the tax
department if an individual made cash deposits of Rs 10 lakh in a year. During
the period 9 November to 30 December, this limit has been lowered to Rs 2.5
lakh. If the cash deposits exceed this limit, the bank or post office will
automatically report it to the tax department. For current accounts, the
threshold limit for cash deposits between 9 November and 30 December will be Rs
12.5 lakh.
The
rule applies to all bank accounts of the individual, though it is not clear how
banks will be able to capture information of cash deposited in other bank
accounts.
Source:-The
Economic Times
No comments:
Post a Comment