Obtain PAN or Form 60 from all account holders: Government tells Banks

Mumbai Mirror

The Central government has asked banks to link permanent account numbers (PAN) or Form 60 if PAN is not available, to all bank accounts by February 28, 2017. In a bid to tighten the noose around tax evaders, the Central Board of Direct Taxes (CBDT) released the notification on Janaury 8.

 

"The persons who are having bank accounts but have not submitted PAN or Form No 60 are advised to submit the PAN or Form No 60 to the bank by February 28, 2017," it read

 

The announcement comes close on the heels on completion of two months of demonetisation. 

 

"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 BSBDA) by February 28, 2017, if not already done," CBDT said.

 

The Basic Savings Bank Deposit Accounts (BSBDA), including Jan Dhan account and zero-balance accounts, don’t have to follow this notification. BSBDA were brought in to take care of simple banking needs of people, which come with free ATM card, monthly statement and cheque book.

 

The RBI has earlier issued a directive stating that if PAN or Form No.60 is not provided in respect of such accounts, no withdrawal will be allowed from the accounts having substantial credit balance/deposits. 

 

The government has also sought details of cash deposits between April 1, 2016 to November 8, 2016 from banks and post offices from accounts where the cash deposits during the period surpassed the specified limits.

 

Under the new rules also mandated 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.