Aditya Bhattachrya Comments on Draft Income Tax Rules on PAN Requirements for Cash Transactions
The proposed revisions to cash deposit and withdrawal reporting thresholds under the draft Income Tax Rules mark a significant shift in compliance design and enforcement strategy. The amendments seek to recalibrate when quoting of PAN becomes mandatory, particularly for higher-value cash transactions.
Commenting on the development in an article published by Upstox, Aditya Bhattachrya observed: “Earlier, PAN quoting requirements applied at relatively low transaction values. These lower thresholds often resulted in widespread reporting, even for ordinary personal or business transactions, increasing documentation and compliance burdens without necessarily improving tax intelligence. The revised limits seek to rationalise this approach by focusing on aggregated or higher-value transactions that are more indicative of significant economic activity.”
Aditya highlights the policy intent behind the draft framework that is to reduce unnecessary compliance friction while strengthening reporting standards for materially significant transactions. By shifting focus to aggregated and higher-value activity, the proposed rules aim to strike a balance between administrative efficiency and effective tax monitoring.
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