Important update for all of us as Bank Cash Deposit rule changes in India are now effective. These new rules were issued by the CBDT through a notification under Income Tax (15th Amendment) Rules, 2022. Lets understand the Bank Cash Deposit Rules changes in India through this article.
Understand the Latest Bank Cash Deposit Rule Changes in India
PAN Card & Aadhar Card Mandatory for Deposits
As per the new bank cash deposit rules, it is mandatory to submit PAN Card & Aadhar Card details while depositing twenty lakhs or above in one financial year and in one or more accounts in banks or post offices. It is mandatory to share these details otherwise you will not be allowed to deposit cash. Additionally, there is a provision for hefty penalties for paying or receiving cash in excess of the permitted amount.
Pan Card & Aadhar Card Mandatory for Withdrawals
Similar to deposits, it is also mandatory to submit Pan Card & Aadhar Card details while withdrawing twenty lakhs or above in one financial year. It is also important to submit these details or opening of a current account or cash credit account with a bank or post office from May 26.
Contact our team of highly skillful experts at: 8881-069-069, If you wish to have Pan Card Registration or open a current bank account online.
What if you don’t have Pan Card Registration?
The persons who don’t have Pan Card Registration will need to apply for it at least one week before for transacting more than fifty thousand rupees in a day or twenty lakh rupees or more in a financial year. Without doing so, you will not be able to transact unless and until you get Pan Card Registration. However, you can also furnish the biometric ID in lieu of PAN in some cases of transactions.
Important things to keep in Mind about Bank Cash Deposit New Rules
- Income tax regulations forbid cash transactions in excess of Rs 2 lakh for any purpose. Therefore, limit your cash transactions or risk paying a penalty.
- The government forbids taking cash in excess of Rs 2 lakh. As a result, even from close family, you cannot accept more than Rs 2 lakh in cash in a single day.
- The maximum amount of cash that may be taken from one donor at once is Rs 2 lakh. Anyone who disregards this might be penalized an amount equivalent to the money received.
- Avoid buying health insurance through cash. The taxpayer will not be qualified for the section 80D deduction in ITR Filing if he or she pays the insurance premium in cash.
- The limit for cash that may be used in a real estate purchase is also Rs 20,000. If a vendor pays in advance, the upper bound is primarily two lakh rupees.
Professionals can now verify Income Tax Returns of Bankrupt Companies
Moreover, If you want any other guidance concerning ITR Filing, please feel free to talk to our business advisors at 8881-069-069.
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