Update Your PAN or Form No. 60 with Banks & Post Office
Dear reader, recently the Central Board of Direct Taxes (CBDT) has amended the 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 28 February 2017, if not done already.
So, all banks are requiring to update and link PAN or Form No 60 (as the case may be) to all existing bank accounts by 28th Feb 2017 positively. They have to communicate it with their all existing accounts holders.
Not Applicable for Basic Savings Bank Deposit Accounts
However, the above rule will not apply for the ‘Basic Savings Bank Deposit Accounts’ (BSBDA). BSBDA is excluded from the compliance of this rule.
BSBDA are small bank account subjected to various limitations. For example:
- total credits should not exceed Rs.100,000 in a year,
- the maximum balance should not exceed Rs 50,000 at any time and
- total withdrawals (cash or transfers) should not exceed Rs 10,000 in a month.
What is Form No. 60?
Form No. 60 is a self-declaration form, where a person not having a PAN declares that he/ she does not have a PAN card.
A person furnishing the Form No. 60 needs to mention few details such as: address along with a valid address proof, status of income tax assessment, and reason for not having a PAN.
Form No. 60, can be downloaded online from the website of the scheduled banks or the post office. You may also visit your bank branch / post office in person. Fill in, furnish the require details and submit the same.
Why should you update your PAN or Form No. 60?
Dear reader, you must obey the above rules. If you have not yet provided PAN or Form No. 60 for your bank account, do so at the earliest to avoid any trouble later.
You have enough time in your hand to do so. You may update you PAN or provide the Form No. 60 to your respective banks any time on or before 28th Feb 2017.
Just let me tell you, why you should do it.
Post-demonetization, government has made several amendments to track black money making its way into the banking system. Stringent know-your-customer (KYC) norms are one step in this regard.
In a circular dated 15th Dec 2016, the Reserve Bank of India (RBI) has put certain restrictions on some of the banking transactions where PAN or Form No. 60 was not available. In the circular, the RBI stated that:
“No debit transaction, transfer or otherwise shall be allowed in accounts which do not comply with the KYC norms.”
Earlier, these rules were made applicable to accounts with a balance of Rs 5 lakh or more and where total deposits made after 9th Nov 2016, exceeded Rs 2 lakh.
Further, now CBDT has amended the tax rules, and provided a deadline of 28th Feb 2017 to update PAN or Forms No. 60 in all the savings accounts, which are held with a bank or a post office.
Dear reader, though you can provide Form No. 60 instead of PAN to comply with the rules. But i would suggest you to get a PAN. Obtaining a PAN is very easy and simple. You can get your PAN by filling online application on NSDL or UTITSL Portal.
You may read our earlier post on PAN Card online application. Step by step guide is mentioned in the post on “How to apply for PAN card online in India” .
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After filling up the online application, an individual has to upload the scanned image of her photograph and the Aadhaar card as per the specifications on the website.
PAN Application Fees
The application fee is Rs107 (inclusive service tax), for a person residing in India and Rs 994 for those with an overseas address.
Mode of Payment- PAN Application Fees
PAN card application fees can be made online through credit cards, debit cards or Net-banking, and there will be a small charge on this transaction.
At last, i would request to all of you, don’t wait for 28th Feb to update your PAN or Form No. 60 with your respective banks/post offices. Do it at the earliest to avoid any unnecessary hassle later.