2000 Notes Deposit Rules: PAN is mandatory to deposit Rs 2000 notes above this amount in bank account
Rule 114B of the income tax rules makes it mandatory for an individual to quote his/her PAN if the cash deposit in a single day either with a bank or post office exceeds Rs 50,000 in a single day. However, quoting PAN is not mandatory if the amount deposited does not exceed Rs 50,000 in a single day.
S. Vasudevan, Executive Partner of Lakshmikumaran & Sridharan Attorneys says, “Rule 114B of the Income Tax Rules already requires a person to quote PAN or Aadhaar if he/she deposits cash exceeding Rs.50,000/- in a single day with a bank or post office. This limit is to be applied in respect of deposits made in a single day and not based on aggregate cash deposits made in a financial year. Hence, if a person makes cash deposit of Rs.20,000/- in one day and deposits another Rs.40,000/- in cash a few days later, the bank or post should not ask for his PAN or Aadhar”
Here is an example to understand this. Suppose, you make a cash deposit of Rs 30,000 in Rs 2000 banknotes into your bank account. And 15 days later, you make another cash deposit of Rs 40,000 in Rs 2000 banknotes into that same bank account. As the single transaction in a day does not cross Rs 50,000, you will have to quote PAN while making a cash deposit of Rs 2000 notes. However, if you had made a single cash deposit of Rs 70,000 (Rs 30,000 + Rs 40,000) in a single day, then the bank will ask you to quote your PAN mandatorily at the time of making the cash deposit.
The government has made the quoting of PAN or Aadhaar mandatory if the cash deposits or withdrawals in a financial year exceed Rs 20 lakh. The notification was issued by the Central Board of Direct Taxes (CBDT) on May 10, 2022, and the new rules became effective from May 26, 2022.
Along with depositing, an individual also has the option to exchange Rs 2000 notes. However, the RBI has put a limit on the number of notes that can be exchanged. As per the RBI notification, an individual can exchange a maximum of 10 notes or Rs 20,000 at a time. In a media interaction on May 22, 2023, the RBI governor said that banks will follow their own process and rules in case of an exchange of Rs 2,000 notes.
However, there is no limit on the amount of deposits that can be made in the bank account. The KYC rules will be applicable in case of deposits. exchange Rs 2000 note is September 30, 2023. The central bank has taken the decision to withdraw Rs 2000 notes from circulation as a part of its clean money policy while maintaining that Rs 2000 note continues to be a legal tender.