PAN card required if combined cash deposits exceed Rs 2.5 lakh till Dec ...

1 of 3

http://economictimes.indiatimes.com/wealth/tax/demonetisation-now-pan-...

Search for News, Stock Quotes & NAV's

You are here: ET Home Wealth Tax

04:05 PM | 29 NOV

SENSEX

MARKET STATS

26,394

NIFTY 50

43.84

8,142

15.25

GOLD (MCX) (Rs/10g.)

USD/INR

28,775

68.65

39.00

-0.13

CREATE
PORTFOLIO

Download ET
MARKETS APP

CHOOSE
LANGUAGE

ENG

11/30/2016 8:08 AM

PAN card required if combined cash deposits exceed Rs 2.5 lakh till Dec ...

2 of 3

http://economictimes.indiatimes.com/wealth/tax/demonetisation-now-pan-...

Demonetisation: PAN card required if

combined cash deposits exceed Rs 2.5
lakh till Dec 30
By Babar Zaidi , ET Bureau | Updated: Nov 17, 2016, 12.58 PM IST

READ MORE ON Tax Rules | Tax Leakages | Pan | Demonetisation | CBDT

NEW DELHI: The government has announced

a new rule to prevent people from making
multiple cash deposits in their bank accounts
without quoting the PAN. Till now, the limit for
cash deposit without PAN was Rs 50,000 per

transaction. A lot of people were depositing

Comments

less than Rs 50,000 per day to escape the PAN

For current accounts, the threshold

provision. But a circular issued on Tuesday

limit for cash deposits between 9

says deposits made between 9 Nov and 30 Dec

November and 30 December will be

Rs 12.5 lakh.

2016 will require a PAN if the combined sum

exceeds Rs 2.5 lakh. This clarifies the
misconception that one can deposit cash in

multiple batches of less than Rs 50,000 each and escape mentioning the PAN.
The CBDT has also made changes in the (AIR) Annual Information Return
rules. Till now, banks and post office branches were supposed to report to the
tax department if an individual made cash deposits of Rs 10 lakh in a year.
During the period 9 November to 30 December, this limit has been lowered to
Rs 2.5 lakh. If the cash deposits exceed this limit, the bank or post office will
automatically report it to the tax department. For current accounts, the
threshold limit for cash deposits between 9 November and 30 December will
be Rs 12.5 lakh.
The rule applies to all bank accounts of the individual, though it is not clear
how banks will be able to capture information of cash deposited in other bank
accounts.
Tax professionals say this is a critical step to prevent tax leakages after the
demonetisation. "If you roll out such a massive demonetisation and don't fix all
the leaky faucets, the whole purpose will be defeated," says Archit Gupta,
founder and CEO of tax filing portal Cleartax.com.

11/30/2016 8:08 AM

PAN card required if combined cash deposits exceed Rs 2.5 lakh till Dec ...

3 of 3

Live Market

News

Other Times Group news

sites
Times of India |
| Mumbai Mirror
Times Now | Indiatimes
|
| Lifehacker
Gizmodo | Eisamay | IGN India
NavGujarat Samay

Portfolio

Mobile

Live TV

Newsletter

http://economictimes.indiatimes.com/wealth/tax/demonetisation-now-pan-...

Commodities

Speed

QnA

Blogs

Alerts

RSS

Living and entertainment

Hot on the Web

Services

Timescity | iDiva | Zoom |

Luxpresso | Gaana | Happytrips |
Cricbuzz | Get Smartapp

Budget 2017 | Sensex, Nifty Live

Blog
Gold Rate | US Presidential
Elections Live Updates
Festival Guide 2016 | Google
expected to unveil Pixel
smartphones
Live: India's surgical strikes on
PoK

ads2book | Gadgetsnow | Free Business Listings

Simplymarry | Astrospeak | Timesjobs | Magicbricks | Zigwheels | Timesdeal |
dineout | Filmipop | Remit2india | Gaana | Greetzap | Techradar | Alivear |
Google Play

Networking
itimes | MensXP.com

About us / Advertise with us / Terms of Use & Grievance Redressal / Privacy Policy / Feedback / Sitemap / Code of Ethics / / Disclaimer

Copyright 2016 Bennett, Coleman & Co. Ltd. All rights reserved.

11/30/2016 8:08 AM