Rules will change from May 26
To check tax evasion, the government has decided to amend the transaction rules. The Central Board of Direct Directives (CBDT) has issued a notification regarding the new rule. According to the new rule, from May 26, if a person deposits or withdraws more than Rs 20 lakh in a financial year, then he will have to give information about his PAN card. CBDT has amended the Income Tax Rules to make PAN card mandatory for those above Rs 20 lakh.
new rule will apply
According to the new rule, from May 26, PAN card will have to be given on transactions of 20 lakh or more from their account in a financial year in banks, cooperative banks, post offices. The transaction of this amount can be tracked with the PAN card. At the same time, the bank has also changed the rules for opening current accounts. Now one has to show his/her PAN card to open a current account. At the same time, people whose bank account is already linked with PAN, but they will also have to follow this rule at the time of transaction.
All account transactions will be included
The CBDT has said in its notification that under the new rule, any transaction from one account or other accounts in a financial year will be applicable to the withdrawal or deposit of 20 lakh rupees. However, the banks are waiting for clarification regarding this new rule of the government. The government says that this rule will not only prevent tax evasion, but also promote digital transactions by reducing cash transactions. After the implementation of the new rule, customers and financial institutions will have to provide their PAN information along with starting the transaction in a financial year.