I-T dept seeks 7-month info on cash deposits before demonetisation

BANKS HAVE ALSO BEEN DIRECTED TO ASK THE ACCOUNT HOLDERS, WHO DID NOT FURNISH PAN DETAILS AT THE TIME OF OPENING ACCOUNTS, TO DO SO BY FEBRUARY 28

NEW DELHI: Seeking to analyse the banking transactions in months before the demonetisation, the income tax department has asked banks to report cash deposits in savings accounts between April 1 and November 9 last year.

Besides, 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 accounts, to do so by February 28 this year.

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 and November 9, 2016 — the day when demonetisation was effected by junking old `500 and `1,000 notes.

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.

It said 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 earlier asked banks and post offices to report to it all deposits above `2.5 lakh in savings accounts and more than `12.50 lakh in current accounts made between November 10 and December 30, 2016.

Also, cash deposits exceeding `50,000 in a single day had to be reported. With an estimated about `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.