Banks Get Time Till June 30 To Obtain PAN From Account Holders
The IT department had asked banks to maintain these records as it looks to crack down on evaders.
The Income Tax (IT) Department has given banks another three months to obtain a permanent account number (PAN) or Form 60 from all account holders as it looks to tighten the noose around evaders.
Though the deadline that banks were given to get the PAN or Form 60 (if PAN is not available) ended on February 28, the IT department on April 5 notified the extension of the time till June 30.
The department in January had asked banks, post offices and cooperative banks to document PAN or declaration of Form 60 received from account holders and maintain all records for transactions under Rule 114B of IT Act.
It had said that persons who have not quoted PAN, or did not furnish Form 60 at the time of opening account, will have to provide the same by February 28. Form 60 is a declaration form filed by an individual without PAN.
Following the demonetisation move effective November 9, the tax department had asked banks and post offices to report to it all deposits above Rs 2.5 lakh in savings accounts and more than Rs 12.50 lakh in current accounts made between November 10 and December 30, 2016. Also, cash deposits exceeding Rs 50,000 in a single day had to be reported.
With an estimated Rs 15 lakh crore in junked currency notes coming back into the banking system post demonetisation, the tax department has started analysing the bank deposit trends.