Union Government amends Income-tax Rules, 1962 to link PAN in all existing bank accounts
People, who have bank account but have not submitted PAN or Form No 60 yet, will now be required to submit the PAN or Form No 60 to the bank.
The Union Finance Ministry on 8 January 2017 amended the Income-tax Rules, 1962 to allow banks to 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.
The amended rules are referred as Income-tax (33rd Amendment) Rules, 2016.
Earlier in December 2016, RBI mandated that no withdrawal will be allowed from the accounts having significant deposits, if PAN or Form No 60 is not provided in respect of such accounts.
Therefore, people, who have bank account but have not submitted PAN or Form No 60 yet, will now be required to submit the PAN or Form No 60 to the bank.
Moreover, the banks and post offices were mandated to submit details 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.
This means that the banks will be required to provide details of cash deposits of Rs 2.5 lakh or more in individual accounts. In case of current accounts, banks and post offices will have to furnish details of accounts where deposits are 12.5 lakh and above.
It has also been provided that people, who are required to obtain PAN or Form No 60, should record the PAN in all the documents and reports submitted to the Income-tax Department.
The Union Government on 8 November 2016 banned the legal tender of Rs 500 and Rs 1000 currency notes in the country.
Following the note ban, around 60 lakh individuals and firms made large deposits totalling to around Rs 7 lakh crore in old notes.