As the Income Tax department looks to tighten the noose around tax evaders, it has given three more months till June 30 to banks 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 February 28, the tax department on April 5 notified the extension of the time till June 30.
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 I-T 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.