The government had modified cash limit restrictions earlier in the year in an effort to clamp down on illegal and unaccounted cash transactions. Paying or receiving cash above the stated cutoff points is punishable by up to 100 percent of the amount paid or received.
According to the new standards and guidelines established by the Central Board of Direct Taxes (CBDT), persons wishing to keep more than 20 lakh per year will now be required to present their PAN details as well as their Aadhaar card.
While there was formerly a limit of 50,000 people expected to outfit PAN subtleties while saving money, the Income Tax division has imposed no yearly line.
However, under the new rules, cash withdrawals and deposits of large sums of money across several institutions in a single year must be accompanied by PAN and Aadhaar subtleties to identify identifiable complexities.
“Each individual will, at the time of entering an exchange determined in segment (2) of the Table beneath, quote his extremely durable record number or Aadhaar number, generally, in reports relating to such exchange, and each individual determined in section (3) of the said Table, who gets such archive, will guarantee that the said number has been properly cited and validated,” the CBDT said in a May 10 notification.
In recent years, the Income Tax division, along with other Central government departments, has been updating and revising guidelines to reduce the risk of monetary extortion, illicit cash exchanges, and other cash wrongdoings.
To limit the use of money in high-value transactions, the government also prohibits receiving cash worth more than 2 lakh. In this manner, an individual cannot accept more than 2 lakh in real money, even from close family members.