The Indian financial system is experiencing various changes in the last few weeks, which are much related to income tax filing and related mechanisms. The current situation is more focused into eradicating corruption from the financial system which requires more authentication system. To make identification easy, a new announcement has been released by the Government recently to make PAN card mandatory for all bank accounts. According to this, mentioning PAN card details is mandatory for opening account in any bank or post office. If one does not have a PAN card, then they have to produce Form-60 for identity verification. This new rule will be applicable on all types of bank account regardless of the fact, if the account is a Jan Dhan account or falls under the no-frills category. This new announcement has been also confirmed by the income tax filing authority of India.
Any person without PAN card can fill in the Form-60 and submit that to the bank as the only alternative. All the bank account holders have been asked to do the same latest by 28th February, 2017 and there are no exception to this rule has been prescribed. In a word, providing PAN card details is utterly mandatory regardless of the bank or account types. And all the banks have been asked to submit the details of money deposited into all accounts between 1st April, 2016 – 31st December, 2016. The details will include a PAN number or Form-60 of the account holder to identify them easily. These details must need to be submitted by the banks, no later than 31st January, 2017. The income tax filing department will link the PAN number and cash deposit data to scrutinize cash flow into them. The Central Board of Direct Taxes (CBDT) has also asked all the banks and post offices to collect Form-60 and PAN card details for all their account holders.