PAN or Aadhaar needed for Rs 20 lakh annual transactions

In a notification dated May 10, the Central Board of Direct Taxes said: “Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall lay down the formats and standards along with procedure for authentication of permanent account number or Aadhaar number.”

PAN, Aadhaar, tax evasion
An assessee needs to mention her PAN in all communications with the I-T department and while entering into specified financial transactions.

To plug tax evasion and expand taxpayer base, the government has made quoting either the permanent account number (PAN) or biometric Aadhaar mandatory for depositing/withdrawing Rs 20 lakh or more in a financial year, and opening of a current account in a bank or post office.

In a notification dated May 10, the Central Board of Direct Taxes said: “Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) shall lay down the formats and standards along with procedure for authentication of permanent account number or Aadhaar number.”

An assessee needs to mention her PAN in all communications with the I-T department and while entering into specified financial transactions. However, there could be situations where a person entering into high-value transactions might not possess a PAN. 

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