The cash withdrawal and deposit system was subjected to a change from May 26,2022. From said date the Centre had inserted Rule 144BB of the Income Tax Rules, 1962 and made it compulsory for persons to quote his or her PAN (permanent account number) or Aadhaar number, for withdrawing or depositing cash more than Rs 20 lakh from the bank accounts, including co-operative banks and post offices, in one financial year. These rules are also apply during the opening of a current account.
Further the rule prescribes that the entities that receive such document have to ensure that PAN or Aadhaar number has been quoted and authenticated.
Earlier PAN card was only required at the time of deposit cash exceeding Rs 50,000 in single day, but no annual limit for cash deposit or withdrawal was covered as per Rule 114 B. Apart from this, the limit was applicable only on deposit made in bank.
Now CBDT has relaxed quoting of PAN-Aadhaar No. in certain transactions vide Notification No. 105/2022 -Income Tax dated 1st September, 2022. According to the latest amendment, the Central Government, the State Government, or a Consular Office are not covered by this requirement. CBDT also stated that by giving retrospective effect to the latest notification, no person will be adversely affected in this regard.
For ready reference of our readers the notification is reproduced as under:
MINISTRY OF FINANCE (Department of Revenue)
(Central Board of Taxes)
New Delhi
Notification No. 105/2022 -Income Tax | Dated: 1st September, 2022
G.S.R. 677(E).—In exercise of the powers conferred by section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules,1962, namely:––
1. Short title and commencement.––
(1) These rules may be called the Income-tax (29th Amendment) Rules, 2022.
(2) They shall be deemed to have come into force from the 9th day of July, 2022.
2. In the Income-tax Rules, 1962, in rule 114BB, after sub-rule (1), the following proviso shall be inserted, namely: —
“Provided that the provisions of this sub-rule shall not apply in a case where the person, depositing the money as per Sl. No. 1 of column (2) or withdrawing money as per Sl. No. 2 of column (2) or opening a current account or cash credit account as per Sl. No. 3 of column (2) of the Table above, is the Central Government, the State Government or the Consular Office.”
[Notification No. 105/2022/F. No. 370142/38/2022-TPL-Part-I]
SHEFALI SINGH,
Under Secy.
Explanatory Memorandum : It is hereby certified that by giving retrospective effect to the present notification, no person will be adversely affected in this regard.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 647 (E) dated 26th August, 2022.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
