Going strict over the tax evaders, the central government has asked banks to seek permanent account number (PAN) or Form-60 in case PAN is not available, from all bank account holders by February 28, 2017.
A notification by the Central Board of Direct Taxes (CBDT) stated,“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 thanBasic Savings Bank Deposit Accounts) by February 28, 2017, if not already done”, the Hindustan Times reported.
However, according to the recent notification,this rule will not apply to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jandhan accounts.
Government launched BSBDA to take care of simple banking needs of people. BSBDA comes with free ATM card, monthly statement and cheque book.
Last month, the Reserve Bank of India through its notification, mandated that no withdrawal shall be allowed from the accounts having substantial credit balance/deposits if PAN or Form No 60 is not provided in respect of such accounts.
Furthermore, the banks and post offices had also 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.
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.
