Winning Bizness Desk

Mumbai. If you make a cash withdrawal or deposit of Rs 20 lakh in a financial year, now it will be mandatory for the bank officer to keep your PAN or Aadhar card, after that, the bank will send this document to the Income Tax Department. The Central Board of Direct Taxes (CBDT) has issued a notification in this regard. The purpose of the government behind this is to track the transactions of cash. This rule will not only apply to banks or post offices, but will also be applicable to cooperative societies. Along with this, if you open a new current account, then PAN has been made mandatory for that too.

What Experts have to say ?

Experts believe that under this new rule, the government will try to stop cash in the economy. This is already being tracked by the government through Annual Statement (AIS) and Section 194N of TDS. But now cash transactions can be traced very easily. However, till now no limit has been fixed for depositing or withdrawing cash in the year on which PAN or Aadhaar is required. However, this rule was definitely applicable on withdrawal or deposit of 50 thousand rupees in a day. Actually, till now people could withdraw or deposit cash below 50 thousand of the PAN card made. Also Aadhaar was not valid for this then. So a large amount of cash was moved here and there.

Tax evasion through small transactions

Experts believe that even after demonetisation, small transactions are happening on a large scale and it was not easy for the government to track it. This led to massive tax evasion. But now with the new rule, transactions up to Re 1 can be tracked, which will make it easier for the government to detect tax evasion. The government had already prepared for this.