Banks asked to get all account holders’ PAN or Form-60 if PAN is not available

NEW DELHI: The government has asked banks to obtain permanent account number (PAN) or Form-60 if PAN is not available from all bank account holders by February 28. This will allow the Income Tax Department to match I-T returns with demonetised cash deposited, helping unearth unaccounted income.

"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 bank accounts (other than BSBDA) by February 28, 2017, if not already done," a notification by Central Board of Direct Taxes (CBDT) said.

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, the notification stated.

The rule will not apply to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jan-Dhan accounts. Last month, the Reserve Bank of India (RBI) had disallowed withdrawals from accounts having substantial credit balance/deposits if the accounts do not have a PAN number.

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 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 a 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 I-T department.