Income Tax Dept now asks banks to report cash deposits before note ban

RSTV Bureau

Indian_ currencyIn a further crackdown on black money, the Income Tax Department has now asked banks to report cash deposits in savings accounts between April 1 to November 9, 2016.

As per a notification, the banks, cooperative banks and post offices will have to report to the tax department all cash deposits between April 1 to November 9, 2016 — the day when demonetisation came into effect and old ₹ 500 and ₹ 1000 notes were made defunct.

Banks have also been directed to ask the account holders, who did not furnished PAN (Permanent Account Number) or Form 60 (for those without PAN) at the time of opening bank account. This, the banks have been asked to do by February 28 next month.

Further bank officials will have 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. Rule 114B lists various transactions for which quoting PAN is mandatory.

The notification 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 demonetisation, the tax department had earlier 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-December 30, 2016.

Also, cash deposits exceeding Rs 50,000 in a single day had to be reported.

The tax department has started analysing the bank deposit trends as an estimated amount of ₹ 15 lakh crore in junked currency notes is said to have come back into the banking system post demonetisation.

(With inputs from PTI)