The revenue tax division has made it obligatory to cite the everlasting account quantity (PAN) or Aadhaar quantity if money deposits and withdrawals exceed Rs 20 lakh inside a 12 months within the checking account, together with co-operative banks and publish workplaces. The new guidelines, which is able to change into efficient from May 26, may even be utilized on the opening of a present account or money credit score account with financial institution, cooperative financial institution or publish workplace.
“Every individual shall, on the time of getting into right into a transaction laid out in column (2) of the Table under, quote his everlasting account quantity or Aadhaar quantity, because the case could also be, in paperwork pertaining to such transaction, and each individual laid out in column (3) of the stated Table, who receives such doc, shall make sure that the stated quantity has been duly quoted and authenticated,” based on a notification by the Central Board of Direct Taxes (CBDT) dated May 10.
Column (2) specifically mentions over-Rs 20 lakh withdrawals, cash deposits and opening of current account or cash credit account where the new rules will be applicable.
Column (3) mentions persons who receive PAN and Aadhaar and ensure that the numbers are authenticated. “A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898),” based on column (3) of the desk within the notification.
The notification stated the Principal Director General of Income Tax (Systems) or Director General of Income Tax (Systems) shall lay down the codecs and requirements together with the process for authentication of everlasting account quantity or Aadhaar quantity.
“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 individual approved 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,” according to the notification.
Meanwhile, the government has asked people to link their PAN number with Aadhaar. The finance ministry has said after March 31, 2023, the PAN of taxpayers who fail to intimate their Aadhaar, as required, shall become inoperative and all the consequences under the Act (Income Tax Act, 1961) for not furnishing, intimating or quoting the PAN shall apply to such taxpayers.
The ministry, however, said that till March 31, 2023, the PAN of the assessees who have not intimated their Aadhaar, will continue to be functional for the procedures under the Act, like furnishing of return of income, processing of refunds, etc.
The CBDT through a notification has said those who have not linked their Aadhaar and PAN numbers so far will have to pay a penalty of Rs 500 if done within three months and Rs 1,000 if done beyond that. However, the PAN will remain operative for the time being even if not being linked to Aadhaar.