I-T dept asks banks to report pre-note ban cash deposits

Besides, banks have also been directed to ask account-holders who have not furnished PANs or Form 60

Seeking to analyse banking transactions in the months before the demonetisation move, the Income Tax Department has asked banks to report cash deposits in savings accounts between April 1 and November 9, 2016.

Besides, banks have also been directed to ask account-holders who have not furnished Permanent Account Numbers (PANs) or Form 60 (for those without PAN) at the time of opening the accounts to do so by February 28 this year.

According to the notification, 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 demonetisation came into effect, junking old Rs 500 and Rs 1,000 notes.

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 the I-T Act. It said persons who have not quoted PAN, or did not furnish Form 60 at the time of opening an account, would have to provide the same by February 28. Form 60 is a declaration filed by an individual without PAN.

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 and December 30. 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 after demonetisation, the tax department has started analysing the bank deposit trends.

Black money in net

More than Rs 4,807 crore of undisclosed income has been detected, while Rs 112 crore worth new notes have been seized by the Income Tax department as part of its country-wide operations against black money hoarders after  demonetisation. Official sources said the taxman carried out 1,138 search, survey and enquiry operations under the provisions of the Income Tax Act since the note ban was announced. The department has issued 5,184 notices to various entities on charges of tax evasion and hawala-like dealings. The department, they said, has seized cash and jewellery worth more than Rs 609.39 crore.