The CBDT vide Notification No. 53/2022-Income Tax | Dated: 10th May, 2022 notified a new set of rules to amend the existing Income-tax Rules, 1962 which shall come into force after the expiry of 15 days from the date of its publication in the Official Gazette (except Rule 114BB). The purpose of this amendment is to prescribe three new transactions for the purpose of invoking the mandate of applying for PAN.
Sr. No. | Amendment | Comments | |||||||||||||||
1 | Insertion: Rule 114(3)(vii)
(vii) in the case of a person who intends to enter into the transaction prescribed under clause (vii) of sub-section (1) of section 139A, at least seven days before the date on which he intends to enter into the said transaction. |
An application for PAN under sub-rule (1) of this rule shall be made by a person at least 7 days before the date on which he intends to enter into a transaction prescribed under section 139A(1)(vii) of the Act.
Section 139A(1)(vii) provides that in the interest of revenue, the Board may prescribe such other transactions as may be found suitable, to make it mandatory for the person intending to enter into such transactions to apply for PAN. |
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2 | Insertion: after rule 114B
114BA. Transactions for the purposes of clause (vii) of sub-section (1) of section 139A.–– The following shall be the transactions for the purposes of clause (vii) of sub-section (1) of section 139A, namely: (a) cash deposit or deposits aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office; (b) cash withdrawal or withdrawals aggregating to twenty lakh rupees or more in a financial year, in one or more account of a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office; (c) opening of a current account or cash credit account by a person with a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act) or a Post Office. |
To fulfil the purpose of the previous amendment, the transactions under Section 139A(1)(vii) are prescribed by the Board by inserting a new rule i.e., 114BA. In simple terms, in addition to the existing criteria, PAN shall be mandatory for the following transactions:
a. Cash deposits of ₹20 lakhs or more in a F.Y. in one or more accounts of a person with a banking company, co-operative bank and post office. b. Cash withdrawals of ₹20 lakhs or more in a F.Y. from one or more accounts of a person with a banking company, co-operative bank and post office. c. Opening of a current account or cash credit account with a banking company, co-operative bank or post office. |
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3 | Insertion: after Rule 114BA
After rule 114BA, as so inserted by the Income-tax (Fifteenth Amendment) Rules, 2022, the following rule shall be inserted after the expiry of sixty days from the date on which this notification is published in the Official Gazette, namely: 114BB. Transactions for the purposes of sub-section (6A) of section 139A and prescribed person for the purposes of clause (ab) of Explanation to section 139A.–– (1) Every person shall, at the time of entering into a transaction specified in column (2) of the Table below, quote his permanent account number or Aadhaar number, as the case may be, in documents pertaining to such transaction, and every person specified in column (3) of the said Table, who receives such document, shall ensure that the said number has been duly quoted and authenticated— TABLE
(2) The permanent account number or Aadhaar number alongwith demographic information or biometric information of an individual shall be submitted to the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) or the person authorised by the Principal Director General of Income-tax (Systems) or Director General of Income-tax (Systems) with the approval of the Board, for the purposes of authentication referred to in section 139A. (3) 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. |
Disclaimer: The author is based in Jabalpur and is a Practicing Company Secretary dealing in Corporate, Legal & Taxation services. The information contained in this write up, as provided by the author, is to provide a general guidance to the intended user. The information should not be used as a substitute for specific consultations. Author recommends that professional advice is sought before taking any action on specific issues.
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