Income-Tax Fifteenth Amendment) Rules, 2022
Income-Tax Fifteenth Amendment) Rules, 2022
The Central Board of Direct Taxes (CBDT) vide a Notification No. 53/2022 dated May 10, 2022, has issued the Income-Tax Fifteenth Amendment) Rules, 2022 to further amend the Income-Tax Rules, 1962.
With this amendment, the government has come out with new rules especially pertaining to those making financial transactions without a Permanent Account Number (PAN) or Aadhaar. PAN or Aadhaar made mandatory for cash deposits or withdrawals above Rs 20 lakh. This notification shall come into force from 26th May 2022 i.e after the expiry of 15 days from its publication in the Official Gazette.
The Gist of Income-Tax Fifteenth Amendment) Rules, 2022
Income-tax (Fifteenth Amendment) Rules, 2022 amends Rule 114 of the Income-tax Rules, 1962 and inserts new Rule 114BA and Rule 114BB for the purpose of notifying transactions for which it will be mandatorily required to quote PAN as per the provisions of section 139A(1)(vii) and section 139(6A) of the Income-tax Act, 1961.
Income-Tax Fifteenth Amendment) Rules, 2022Section 139A of Income Tax Act – PAN Card is mandatory for this Transaction
Section 139A of the Income Tax Act provides for mandatory obtaining of a Permanent Account Number (PAN) in the following circumstances:
- If the total income exceeds Rs. 2,50,000
- If total sales, turnover or gross receipts of the business or profession exceeds Rs. 5 Lakh
- Where return of income is mandatorily required to be furnished under section 139(4A)
- Where an employer is mandatorily required to furnish a return of fringe benefits (the provisions related to fringe benefits under the Act have since been withdrawn) under section 115WD
- If entered into a financial transaction of Rs. 2,50,000 or more in a financial year
- Managing Director, Karta, partner, trustee, principal officer, etc., and lastly,
- Such other transactions as the CBDT may prescribe.
Section 139(6A) of the Income Tax Act
Section 139(6A) of the Income Tax Act provides for mandatory quoting of PAN or Aadhaar number in the prescribed transactions and authentication of such PAN or Aadhaar number in the prescribed manner.
Rule 114 of Income-tax Rules
The Board has prescribed Rule 114 in the Rules to prescribe the forms and the procedure for obtaining PAN from the income-tax department.
The gist of transactions that will require mandatory quoting of PAN – Rule 114BA
As per the new rules, furnishing PAN or Aadhaar will be compulsory in the following transactions:
- Cash deposit or deposits aggregating to Rs 20 lakh or more in a financial year, in one or more accounts of a person with a banking company or a co-operative bank or a Post Office;
All the cash deposits into all the bank accounts of the person in a financial year will be aggregated to calculate the threshold limit of Rs. 20 Lakh.
- cash withdrawal or withdrawals aggregating to Rs 20 lakh or more in a financial year, in one or more accounts of a person with a banking company or a co-operative bank or a Post Office;
All the cash withdrawals from all the bank accounts of the person in a financial year will be aggregated to calculate the threshold limit of Rs. 20 Lakh.
- For opening a current account or cash credit account with a bank, co-operative bank, and post office.
Note: The above provisions shall come into effect from 26th May 2022.
Amendment in Rule 114 – Application for PAN
The person who intends to enter into the above transactions shall apply for PAN in Form 49A at least 7 days before the date of transaction.
Amendment in Rule 114BB – Authentication of PAN or Aadhaar Number
The bank or the co-operative bank or the Post Master General shall authenticate the PAN or Aadhaar Number quoted in the documents for carrying out the above transactions. This shall come into effect from 10th July 2022.
Through the Income-Tax (Fifteenth Amendment) Rules, 2022, CBDT announced that the permanent account number or Aadhaar number along with 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 authorized 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.
