Requirement to quote PAN on cash deposit/withdrawal not applicable on Central/State Govt.: CBDT

Notification No. 105/2022, dated 01-09-2022

Section 139A of the Income-tax Act prescribes certain transactions wherein it is mandatory for a person to obtain a Permanent Account Number (PAN). It also lists the situations where quoting PAN is mandatory.

The Central Board of Direct Taxes (CBDT) vide Notification no. 53/2022, dated 10-05-2022, has notified a new Rule 114BB listing down transactions wherein a person is required to quote PAN or Aadhaar. The board has notified the following transactions:

a) Cash deposit, aggregating to Rs. 20 lakh or more, in a financial year in Bank or Post Office.
b) Cash withdrawal, aggregating to Rs. 20 lakh or more, in a financial year in Bank or Post Office.
c) Opening of a current account or a cash credit account with a bank or a post office.
Now, the board has inserted a new proviso to said rule to provide an exemption to a certain person. It has been provided that the provisions of Rule 114BB shall not apply in the case where the person is:

• • • The Central Government;
    • The State Government; or
    • The Consular Office.

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