CBDT vide Notification No. 105/2022 dated 01.09.2022 in G.S.R. 677(E) through Income-tax (29th Amendment) Rules, 2022 has amended Rule 114BB of the Income-tax Rules, 1962 (‘Rules’) to exclude Central Government, the State Government or the Consular Office from mandatory quoting of PAN while entering into banking transactions of cash withdrawals and deposits aggregating to Rs. 20 Lakh or more in a financial year or opening of a current account or a cash credit account with any banking company or a co-operative bank to which the Banking Regulation Act, 1949 applies in accordance with the provisions of section 139A(6A) of the Income-tax Act, 1961 (‘Act’).
Section 139A of the Act provides for mandatorily obtaining a Permanent Account Number (PAN) by a person in certain cases. It also provides for mandatorily quoting of PAN in the documents pertaining to certain prescribed transactions as envisaged in sub-section (6A) of this section.
In this context, the Board has prescribed Rule 114BB, sub-rule (1) of which prescribes mandatory quoting of PAN in the following transactions-
(i) Cash deposits aggregating 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 to which the Banking Regulation Act, 1949 applies or with the Post Office.
(ii) Cash deposits aggregating 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 to which the Banking Regulation Act, 1949 applies or with the Post Office.
(iii) 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 applies or with the Post Office.
The banking company or co-operative bank or the Post Master General has to ensure that the PAN is quoted and authenticated.
With this exemption, Central Government, the State Government or the Consular Office shall not be required to quote PAN even if they enter into the above transactions.
This exemption provision has come into effect retrospectively from 9th July 2022.
The sub-rule(1) of Rule 114BB after this amendment reads as follows-
(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-
The following proviso is inserted by the Income-tax (29th Amendment) Rules, 2022 with effect from 09.07.2022-
Provided that the provisions of this sub-rule shall not apply in a case where the person, depositing the money as per Sl. No. 1 of column (2) or withdrawing money as per Sl. No. 2 of column (2) or opening a current account or cash credit account as per Sl. No. 3 of column (2) of the Table above, is the Central Government, the State Government or the Consular Office.
Read the full text of CBDT Notification No. 105/2022 dated 01.09.2022 on Excluding Governments from mandatory quoting of PAN under Rule 114BB
MINISTRY OF FINANCE
(department of revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, 1st September, 2022
INCOME-TAX
G.S.R. 677(E).—In exercise of the powers conferred by section 139A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules,1962, namely:––
1. Short title and commencement.–– (1) These rules may be called the Income-tax (29thAmendment) Rules, 2022.
(2) They shall be deemed to have come into force from the 9th day of July, 2022.
2. In the Income-tax Rules, 1962, in rule 114BB, after sub-rule (1), the following proviso shall be inserted, namely: —
“Provided that the provisions of this sub-rule shall not apply in a case where the person, depositing the money as per Sl. No. 1 of column (2) or withdrawing money as per Sl. No. 2 of column (2) or opening a current account or cash credit account as per Sl. No. 3 of column (2) of the Table above, is the Central Government, the State Government or the Consular Office.”.
[Notification No. 105/2022/F. No. 370142/38/2022-TPL-Part-I]
SHEFALI SINGH, Under Secy.
Explanatory Memorandum : It is hereby certified that by giving retrospective effect to the present notification, no person will be adversely affected in this regard.
Note : The principal rules were published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii) vide number S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification number G.S.R. 647 (E) dated 26th August, 2022.
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