Cash Deposits Rule Change For More Than Rs. 20 Lakhs In One Year

A Rule regarding cash deposits for more than Rs. 20 lakhs has been changed this year, by the Central Board of Direct Taxes (CBDT). For this deposit, investors will have to present their PAN and Aadhaar details mandatorily. The union government has amended this rule to shred out illegal and unaccounted cash transactions. A penalty of up to 100% will be levied on paying or receiving cash above the limits set, without following the rule. This will allow the government to track all the financial transactions and corruption will be mitigated.

Additionally, earlier, a limit of Rs. 50,000 per day was there, before individuals needed to furnish their PAN. But now, the government did not set an annual limit.

According to the union government, "Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated." This guideline has been published by the CBDT.