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Government Banks to Obtain PAN OR Form 60 For All Bank Accounts

Government Banks to Obtain PAN OR Form 60 For All Bank Accounts 

PAN OR Form 60 For All Bank Accounts : The government today asked all the banks to get permanent account number (PAN) or form no 60 (in the absence of PAN) from all account holders by February 28, 2017. 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 28.02.2017, if not already done. In this connection, it may be mentioned that RBI vide circular dated 15.12.2016 has 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. Therefore, persons who are having bank account but have not submitted PAN or Form No.60 are advised to submit the PAN or Form No. 60 to the bank by 28.2.2017.

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The banks and post offices have also been mandated to submit information in respect of cash deposits from 1.4.2016 to 8.11.2016 in accounts where the cash deposits during the period 9.11.2016 to 30.12.2016 exceeds the specified limits.  It has also been provided 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 notification amending the relevant rules is available on the official website of the Income-tax Department i.e www.incometaxindia.gov.in.

Government Banks to Obtain PAN OR Form 60 For All Bank Accounts 

PAN OR Form 60 For All Bank Accounts : 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;

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The Reserve Bank of India, on December 15, 2016, had 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. Therefore, people who have bank accounts but have not submitted their PAN or form no 60 are advised to submit it to the banks latest by February 28, 2017.

The banks and post offices have also been asked to submit information in respect of cash deposits from April 1- November 8, 2016 in accounts where the cash deposits during the period November 9- December 30, 2016 exceeds the specified limits.

It has also been provided that if someone is required to obtain PAN or form no 60, he/she 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.

Government Banks to Obtain PAN OR Form 60 For All Bank Accounts 

PAN OR Form 60 For All Bank Accounts :  The Union Finance Ministry has asked all banks – both private and public sector – in India to ensure that they obtain the Permanent Account Numbers (PANs) or Form 60 of all the accounts they have, with the exception of Basic Savings Bank Deposit Accounts (BSBDAs). The banks have to provide this information to the ministry before February 28.

There are two reasons why the finance ministry may be asking for these details. First, these would ensure that all bank accounts have been opened legally and there is no duplication of it anywhere. This will help root out accounts that may have been created illegally to hide black money.

Second, it will also give the government an idea of the income of an individual, and whether this tallies with the income that was claimed in the income tax returns forms. This could be an excellent indicator of if anyone had deposited black money in banks, or had had someone else’s black money depisted in their bank accounts.

Why are BSBDAs exempt?

BSBDAs are essentially no-frill accounts, where although ATM cards and some other facilities are free, the maximum annual deposit is capped at Rs 1 lakh, and the maximum bank balance should not exceed Rs 50,000. These conditions make BSBDAs ill-suited for the needs of black-money holders who might want to launder their haul through the banking system.

Details of cash deposits

Meanwhile, the Centre has directed banks and post offices 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 to December 30 exceeds the specified limits.

Government Banks to Obtain PAN OR Form 60 For All Bank Accounts 

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