As part of the drive to unearth black money, the government has asked banks to obtain the permanent account number…
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As part of the drive to unearth black money, the government has asked banks to obtain the permanent account number (PAN) or Form 60 if PAN is not available, from all bank account holders by February 28, 2017, an official statement said on Sunday.
"Income Tax Rules have been amended to provide that bank shall obtain and link PAN or Form No 60 (where PAN is not available) in all existing bank accounts, other than Basic Savings Bank Deposit Accounts (BSBDA), by February 28, 2017, if not already done," a Finance Ministry statement here said.
The ministry advised persons with bank accounts who have not submitted PAN or Form No 60 to submit the same to the bank by February 28, 2017.
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This rule, however, will not apply to the BSBDA, which are zero balance savings accounts, including the Jandhan accounts designed to promote financial inclusion, the statement said.
The Reserve Bank of India had, last month, mandated that no withdrawal shall be allowed from the accounts having substantial credit balance or deposits if PAN or Form 60 is not provided in respect of such accounts.
"It has also been provided under the new rules that person who is required to obtain PAN or Form No.60 shall record the PAN/Form No.60 in all the documents and quote the same in all the reports submitted to the Income Tax Department," the statement added.
The ministry also said that banks and post offices had been mandated to submit information in respect of cash deposits from April 1, 2016 to November 8, 2016 in accounts where the cash deposits during the period November 9, 2016 to December 30, 2016 exceeds the specified limits.
The move aims to analyse the banking transactions carried out in months before the demonetisation decision was announced on November 8. On that day, Prime Minister Narendra Modi had announced that Rs.1,000 and Rs.500 notes were no longer legal tender. Citizens were given up to December 30 to deposit the demonetised currency in banks.
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