People making multiple cash deposits in their bank accounts must quote PAN
Posted on: 17/Nov/2016 12:52:27 PM
According to the Reserve Bank of India circular issued on Wednesday, deposits made between November 9 and December 30 will require quoting of PAN if the combined sum deposited exceeds Rs.2.5 lakh.
This move is significant as bank deposits have surged following the demonetization of Rs.500 and Rs.1,000 notes.
Till now, PAN was required only for cash deposits more than Rs.50, 000 per transaction. Customers tended to deposit a few rupees less than Rs.50,000 a day to avoid the PAN provision.
The government has also made it mandatory for banks, co-operative banks and post offices to report to the Income-Tax Department all deposits above Rs.2.5 lakh in savings accounts, and more than Rs. 12.5 lakh in current accounts made during the 50-day window provided to tender the old notes.
