PAN cards not linked to Aadhaar numbers before the July deadline will be deemed invalid.
Move comes to tap merchants who exploited the loophole to gain credit points.
All the banknotes in the denomination of Rs. 10 issued by the Bank in the past will continue to be legal tender.
The restrictions will not apply to the government, any banking company, post office savings bank or co-operative bank.
RBI is likely to lift the weekly limit on cash withdrawals from savings accounts in banks, said economic affairs secretary, Shaktikanta Das.
Opinions are divided on whether this move is adequate to clean the source of political funding.
The government is counting on spends to go up as people will be left with more money in their hands, analysts say.
Against estimated 4.2 crore persons engaged in organised sector employment, the number of individuals filing I-T returns for salary income were only 1.74 crore.
In his fourth budget, finance minister Arun Jaitley had a lot for rural India as well as the infrastructure sector.
The IT department has identified these deposits based on its scrutiny of ‘suspicious’ cash deposits of over Rs 5 lakh made between November 10 and December 30.
Shares of outsourcing giant TCS fell 5.6 per cent, Tech Mahindra 9.7 per cent, HCL Tech 6.3 per cent, Infosys 4.6 per cent and Wipro 4.23 per cent.
Its implementation may bring various components of your salary, such as reimbursements, under the taxman’s radar.