Have you updated your PAN with the bank yet?
The Central Board of Direct Taxes (CBDT) has amended income-tax rules and asked all banks to link the Permanent Account Number (PAN) or Form No. 60 (where PAN is not available) to all existing bank accounts by February 28, 2017, if not done already, according to a press release issued on January 8. Basic Savings Bank Deposit Accounts (BSBDA) are excluded from the necessary compliance norms of this rule.
BSBDA are small bank accounts with various limitations. For instance, total credit in such accounts should not exceed ₹1 lakh in a year, the maximum balance in the account should not exceed ₹50,000 at any time, and the total withdrawal should not exceed ₹10,000 in a month.
So, those who have not yet provided PAN or Form 60 for bank accounts must do so at the earliest to avoid unnecessary trouble later.
In a circular dated December 15, 2016, the RBI put restrictions on some banking transactions on accounts where PAN or Form 60 is not available. The RBI said: “No debit transaction, transfer or otherwise shall be allowed in accounts which do not comply with KYC norms.”
For starters, these rules were made applicable to accounts with a balance of ₹5 lakh or more and where total deposits made after November 9, 2016 exceeded ₹2 lakh. Taking it further, the CBDT amended tax rules, and provided a deadline of February 28 to update PAN or Form 60 in all the savings accounts.
Form 60, which can be used in place of PAN, can be downloaded from the website of scheduled banks. These are also available at the branches of banks and post offices. It is a self-declaration form, where a person not having a PAN declares that she does not have a PAN card.
After this declaration, the account holder can make transactions in cash, such as deposits or withdrawals. A person furnishing Form 60 needs to mention details, including address along with a valid address proof, status of income tax assessment, and reason for not having a PAN.
For those wanting to get a PAN, it can be done online. Applications can be made through the portals of NSDL or UTITSL. The application form has been enabled with digital signature certificate and Aadhaar based e-signature. Aadhaar can also serve as proof of identity, address and date of birth.
The application fee is ₹107, including service tax, for a person residing in India and ₹994 for those with an overseas address.