Rule 161 lists three transactions — cash deposits or withdrawals of twenty lakh rupees or more in a financial year, and opening a current or cash credit account — for which a PAN must be quoted and the receiving bank or post office must check it, with exemptions for government, consular offices and certain non-residents.
161
Rules 2026 · Rule 161
Transactions for purposes of section 262(9)(a)
Rules 131-200
The transactions (sub-rule 1). A person quotes the PAN at the time of the transaction, and the bank, co-operative bank or Post Office receiving the document ensures it is quoted and authenticated, for: (1) cash deposits aggregating to twenty lakh rupees or more in a financial year in one or more accounts; (2) cash withdrawals aggregating to twenty lakh rupees or more in a financial year in one or more accounts; and (3) opening a current account or cash credit account.
Exemptions (sub-rules 2 to 4). Not the Central Government, a State Government or a consular office; and not a non-resident (not a company) or foreign company that carries out Sl. Nos. 1 to 3 with an IFSC banking unit and has no income chargeable to tax in India.
Authentication (sub-rules 5 and 6). An individual's PAN is submitted to the Principal Director General or Director General of Income-tax (Systems), or an authorised person with the Board's approval, for authentication under section 262; the Director General lays down the formats, standards and procedure.