Modi govt has taken various steps to unearth Black money including demonetisation of Rs 500 and Rs 1000 Notes.On the declaration of the Demonetisation of Notes , it was expected that this move will be able to remove major chunk of black money from the economy but expectation remains far from actual position.The public has deposited approximate 97% of the demonetised notes back into the system.It is beyond any doubt that money deposited back into banks is not all white.Out of this money few persons will declare amount under new black money declaration scheme but scheme will be sucessful only if pursued.
Now it is a Huge task for Govt agencies to find out the Black Money from money deposited by Black sheep.Earlier CBDT has directed vide notification dated 15/11/2016 the Bank/Post office to report cash deposited during the 9/11/2016 to 30/12/2016 in current account Rs 12,50,000 or more and in other account Rs 250000 or more .In order to gather more information and to facilitate the agencies Ministry of Finance(CBDT) has further issued a Notification no 2 dated 06/01/2017.
- Major highlights of the Notification.
- 1. All Bank and post office account saving and other accounts holder have to submit their PAN in bank/Post office if not already submitted at the time of opening of account or at the later stage by 28.02.2017.
- 2. If Account holder does not have the PAN then he can submit form 60.
- 3. If you have a Basic Saving Bank Deposit Account in bank then above clause is not applicable.
- 4. Further information of cash deposited and cash withdrawal from 01.04.2016 to 08/11/2016 also asked from Banks /post office for those accounts in which aggregate cash deposited during 09/11/2016 to 30/12/2016 is more than Rs 12,50,000 in current account and Rs 2,50,000 (other account)
- 5. Last date to submit the report as per point no 4 is 15/01/2017.
- 6. Quoting of PAN or giving Form 60 in case of specified cash transactions exceeding Rs 50,000 is already compulsory. The notification also makes it mandatory for all those (e.g bank/post office officials, hotel or restaurants etc as per Rule 114B) receiving PAN/Form 60 for such transactions to maintain records and provide the same to the income tax authorities as per income tax rules.
Press release By Govt on the issue
Income-tax Rules have been amended to provide that bank shall obtain and link PAN or Form No. 60 (where PAN is not available) in all existing bank accounts (other than BSBDA) by 28.02.2017, if not already done.
In this connection, it may be mentioned that RBI vide circular dated 15.12.2016 has mandated that no withdrawal shall be allowed from the accounts having substantial credit balance/deposits if PAN or Form No.60 is not provided in respect of such accounts. Therefore, persons who are having bank account but have not submitted PAN or Form No.60 are advised to submit the PAN or Form No. 60 to the bank by 28.2.2017.
The banks and post offices have also been mandated to submit information in respect of cash deposits from 1.4.2016 to 8.11.2016 in accounts where the cash deposits during the period 9.11.2016 to 30.12.2016 exceeds the specified limits.
It has also been provided that person who is required to obtain PAN or Form No.60 shall record the PAN/Form.No.60 in all the documents and quote the same in all the reports submitted to the Income-tax Department.
Complete Text of notification is given as under.
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION New Delhi, the 6th January, 2017 G.S.R. 14(E).—
In exercise of the powers conferred by section 139A and section 285BA, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:—
1. (1) These rules may be called the Income–tax (1st Amendment) Rules, 2017.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules), in rule 114B, after the third proviso, the following proviso shall be inserted namely,—
“Provided also that a person who has an account (other than a time deposit referred to at S.No.12 of the Table and a Basic Saving Bank Deposit Account) maintained with a banking company or a cooperative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) and has not quoted his permanent account number or furnished Form No. 60, as the case may be, at the time of opening of such account or subsequently, he shall furnish his permanent account number or Form No. 60, as the case may be, to the person specified in clause (c) of sub-rule (1) of rule 114C on or before the 28th day of February, 2017.”.
3. In the principal rules, in rule 114C, after sub-rule (2), the following sub-rule shall be inserted, namely:—
“3. The person referred to in sub-rule (1) or sub-rule (2) who has received any document in which permanent account number is mentioned or as the case may be, a declaration in Form No.60 has been furnished, shall ensure that the valid permanent account number or the fact of furnishing of Form No.60, is duly mentioned in the records maintained for the transactions referred to in rule 114B and the permanent account number or the details of Form No.60 are linked and mentioned in any information furnished to the income-tax authority or any other authority or agency under any provision of the Act or any rule prescribed therein.”.
4. In the principal rules, in rule 114D, in sub-rule (2), the following proviso shall be inserted, namely: “Provided that the statement in respect of the transactions listed in clause (ii) of column (3) of serial number (10) of the Table under rule 114B shall be furnished on or before the 15th day of January, 2017.”
5. In the principal rules, in rule 114E,—
(i) in sub-rule (2), in the Table, after serial number 12 and entries relating thereto, the following serial number and entries shall be inserted, namely:—
(ii) in sub-rule (5), in the proviso, after the words, brackets and figures “serial number (12)”, the words, brackets and figures “and serial number (13)” shall be inserted.
6. In the principal rules, in Appendix-II, in Form No.61A, in Part C, for ‘C.3’ and entries relating thereto, the following shall be substituted, namely:-
Nature and value of transaction
Class of person (reporting person)
Cash deposits during the period 1 st April,
(i) A banking company or a co-operative bank to
2016 to 9th November, 2016 in respect of
which the Banking Regulation Act, 1949 (10 of
accounts that are reportable under
1949) applies (including any bank or banking
institution referred to in section 51 of that Act);
(ii) Post Master General as referred to in clause (j) of
section 2 of the Indian Post Office Act, 1898 (6 of
Aggregate gross amount credited to the account in cash
Aggregate gross amount debited to the account in cash
Aggregate gross amount credited to the account in cash from 1st day of
April, 2016 to 8th November, 2016
Aggregate gross amount credited to the account in cash from 9th day of
November, 2016 to 30th day of December, 2016