PAN mandatory for depositing cash more than Rs 50K and for combined cash deposits of more than Rs 2.5 lakh till Dec 30

New Delhi, Nov 17 (KNN) The RBI has clarified that anybody depositing more than Rs 50,000/- in cash in their bank account has to submit a copy of the PAN card in case the bank account is not seeded with PAN.

The move has been taken keeping in view that people are trying to make multiple cash deposits in their bank accounts without quoting the PAN and are trying to deposit cash more than Rs 50 thousand without providing PAN.

Also, in the same IT Rules, PAN reporting requirements are there for other transactions, which banks need to insist upon.

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.

The CBDT has also made changes in the (AIR) Annual Information Return rules.

So far, the 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.

Now during the period 9 November to 30 December, this limit has been lowered to Rs 2.5 lakh and in case the cash deposits exceed this limit, the bank or post office will have to 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.