The government has notified revised income tax rules that allow individuals to deposit or withdraw cash of up to ₹10 lakh annually without quoting their PAN, effective April 1. Under the updated framework, PAN details will become mandatory only when the aggregate cash transactions exceed ₹10 lakh in a financial year, rather than being applied on a per-transaction basis.

Key Highlights

• New tax rules permit cash deposits and withdrawals up to ₹10 lakh annually without mandatory PAN reporting.
• Updated guidelines aim to simplify compliance while maintaining oversight on high-value cash transactions nationwide.

This move is aimed at simplifying compliance for small depositors and everyday banking users, while still maintaining oversight on large cash movements. The new guidelines are part of broader efforts to streamline financial regulations, reduce paperwork, and encourage formal banking participation.

However, tax authorities will continue monitoring transaction patterns to detect suspicious activity or possible tax evasion. Financial institutions may still seek documentation or explanation for unusually large deposits, even if they fall within the prescribed threshold.

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The revised norms are expected to ease banking operations for individuals and small businesses, particularly in semi-urban and rural regions, where cash usage remains high. At the same time, the government aims to balance convenience with transparency by strengthening reporting mechanisms for high-value transactions.