The tax department has given banks three more months, until 30 June, to obtain permanent account number (PAN) or Form 60 from all account holders, as it looks to tighten the noose around evaders.
Though the deadline for getting the PAN or Form 60 (if PAN is not available) by banks ended on 28 February, the tax department on 5 April notified the extension of the time till 30 June.
In the notification, the Income Tax Department said that in Income Tax Rules 114B, in the fourth proviso, “for the figures, letters and words ‘28th day of February’ the figures, letters and words ‘30th day of June’ shall be substituted.” Rule 114B lists various transactions for which quoting PAN is mandatory.
The tax department had in January 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 28 February. Form 60 is a declaration form filed by an individual without PAN.
Following the demonetisation move effective 9 November, 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 10 November and 30 December 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.
Join The Quint on WhatsApp. Type “JOIN” and send to 9910181818.