More reports on: Government policies

PAN made mandatory for all bank accounts from 28 February

news
09 January 2017

The government has made it mandatory that all individuals bank accounts are updated with PAN (permanent account number), or Form-60 if PAN if not available, by 28 February 2017.

The government has also asked banks to obtain PAN or Form-60 from all bank account holders by the said date.

The post demonetisation move is aimed at tightening the noose around tax evaders as the government continues its fight against black money and tax evasion.

"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," a notification by the Central Board of Direct Taxes (CBDT) issued on Sunday stated.

This rule will, however, not apply to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jan Dhan accounts.

The BSBDA were introduced to take care of simple banking needs of people, which come with free ATM card, monthly statement and cheque book.

Last month, RBI had banned withdrawals from accounts having substantial credit balance/deposits if PAN or Form No.60 is not provided in respect of such accounts.

It further said that the banks and post offices had also been mandated to submit information in respect of cash deposits from 1 April 2016 to 8 November 2016 in accounts where the cash deposits during the period 9 November 2016 to 30 December 2016 exceeds the specified limits.

The new rules also require a person obtaining PAN or Form No 60 to record the PAN/Form No 60 in all the documents and quote the same in all the reports submitted to the Income-tax Department.

Income-tax rules have also been suitably 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 February 2017.





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