I-T wants reports on cash deposits before demonetisation

New Delhi : The Income Tax Department has asked banks for reports on cash deposits in savings accounts between April 1 and November 9, 2016.
A recent notification asks the banks, cooperative banks and post offices for reports on cash deposits between April 1 to November 9, 2016 — the day when the central government’s measure to make old banknotes of Rs Rs 500 and Rs 1000 invalid came into effect — to the department.
Banks have been asked to strictly update PAN (Permanent Account Number) details or Form 60 (for those without PAN) of account holders and maintain records for transactions under Rule 114B of I-T Act.Rule 114B lists various transactions for which quoting PAN is mandatory.
Those who have not submitted their PAN details or Form 60 will have to do so by February 28.
The department had previously asked banks and post offices to report deposits above Rs 2.5 lakh in savings accounts and more than Rs 12.50 lakh in current accounts made between November 10-December 30, 2016, as well as cash deposits exceeding Rs 50,000 on a single day.With an estimated about Rs 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.