With the demonetisation drive going strong across the country, CBDT today notified about the compulsory quoting of PAN for all cash deposits exceeding Rs. 50000/- in a single day.
CBDT today notified through an Amendment in Rule 114B that producing your PAN details while making cash deposits of Rs. 50000/- in a single day from November 09, 2016 to December 30, 2016 is mandatory. Furthemore, all the cash deposit adding up to Rs. 2.5 lakh during the above mentioned period needs to be accompanied with your PAN details.
The amendment in Rule 114E for filing an AIR report as per the requirement of Section 285BA of Income Tax Act, 1961 – any banking company and a cooperative bank (to whom the Banking Regulation Act, 1949 applies) in addition to Post Offices need to report for all instances of cash deposits in current accounts (it is to be taken care that if any individual has more than one current account then all his deposits will be accounted for) that are in excess of Rs. 12.5 lakh and Rs. 2.5 lakh in case of individual accounts.
The decision to mandatorily quote PAN details for each and every cash deposit that goes beyond the prescribed limits will ensure that no transaction goes unnoticed and any suspicious one can be taken care of.
Out of the many effects this demonetisation drive is or will have on the Indian economy is accounting for the unaccounted money with individuals and companies that are due to be taxed as per the Income Tax Act, 1961. Whether it is a cash deposit done on a single day or over the entire duration from November 09, 2016 to December 30, 2016 – all of it is going to be reported by the banks to ensure parity in the rules and regulations that have been ignored till date by many.