For deposits/withdrawals of 20 lakh and current A/C opening, PAN or Aadhaar must be provided


Posted on 11 May 2022


For Illustration Purpose Only.

For deposits or withdrawals of more than 20 lakh in a financial year, or the creation of a current account, the government has made it essential to reference either PAN or Aadhaar. According to a notification issued by the Central Board of Direct Taxes (CBDT), providing the Permanent Account Number (PAN) or biometric Aadhaar will be required for such high-value deposits or withdrawals from banks in a financial year, as well as the opening of a current account or cash credit account with a bank or post office. Sandeep Sehgal, an AKM Global Tax Partner, said the initiative will offer more openness to financial activities by requiring banks, post offices, and cooperative societies to declare deposits and withdrawals totaling INR 20 lakh or more in a fiscal year.


Key Points


  • For deposits or withdrawals of more than 20 lakh in a financial year, or the creation of a current account, the government has made it essential to reference either PAN or Aadhaar.

  • According to a notification issued by the Central Board of Direct Taxes (CBDT), providing the Permanent Account Number (PAN) or biometric Aadhaar will be required for such high-value deposits or withdrawals from banks in a financial year, as well as the opening of a current account or cash credit account with a bank or post office.


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