Income Tax Rules: Central Board of Direct Taxes (CBDT) has recently changed some rules from the income tax. Under this, it has made the Permanent Account Number (PAN) or base (AADHAR) for backing transactions of more than Rs 20 lakh in a year. New rules will be applicable from May 26. In a notification issued at the beginning of this month, CBDT said that giving information about PAN or base on to remove or deposit the amount of 20 lakh or more in a year.
Sandeep Sehgal, Tax Partner, AKM Global, said the move is expected to bring more transparency in financial transactions. Also, due to this rule, it will now be mandatory to give information about transactions above Rs 20 lakh to banks, post offices or co-operative societies. This will help in preventing tax evasion.
Apart from this, for opening a current account or cash credit account in any bank or post office, it will also be necessary to provide PAN or Aadhaar information. At present, Aadhaar or PAN is used for income tax related works.
It is necessary to give PAN number in all types of work related to Income Tax Department. But at the time of transaction of large cash amount, if a person does not have PAN, then he can use Aadhaar. According to the rules, if a person needs to provide PAN information, but does not have a PAN, he can give the biometric identification of Aadhaar.
According to tax experts, once the PAN number is given at the time of the transaction, it will be easier for the tax officials to track the transaction.
There are so many people who deal with large money don’t go to banks at all. How will you deal with them? Unless there are restrictions on dealing with hard cash, this problem can’t be addressed. Anyone holding large cash has to be penalised.