In yet another post-demonetisation missive from the government, banks have been ordered to obtain account holders' permanent account numbers (PAN) or Form No. 60 and then link the same to their accounts.
In yet another post-demonetisation missive from the government, banks have been ordered to obtain account holders’ permanent account numbers (PAN) or Form No. 60 and then link the same to their accounts. It has also asked banks and post offices to submit informations of deposits from April 1 to November 8 in accounts in which deposits during November 9 to December 30 exceeded specified limits.
“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) stated today.
As per the notification, persons who have bank accounts but have not submitted PAN or Form No 60 are suggested to submit the PAN or Form No 60 to the bank by February 28. This rule will not apply to Basic Savings Bank Deposit Accounts (BSBDA), which were earlier introduced for the simple banking needs of people, which come with monthly statement, cheque book and free ATM card. In December, last year the RBI had notified that no withdrawal would be permitted from the accounts having substantial credit balance/deposits if PAN or Form No.60 is not provided in these accounts.
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The notification also said that banks and post offices had also been asked to submit details of cash deposits from April 1, 2016 to November 8, 2016 in accounts in which cash deposits during the period November 9 to December 30 last year exceeds the given limits.
(With inputs from PTI)