Your bank account will be frozen on Feb 28!

New Delhi: If you have a bank account, then this news is of extreme importance for you. Your account is in danger, and it may be freezed by the Income Tax department on February 28.

   

After government made PAN details mandatory for all account holders, banks have started asking their customers, including KYC-compliant ones, to update their PAN details by February 28.

Public sector banks have started writing to their customers seeking furnishing of PAN details saying Income Tax department has frozen accounts that did not have those details in recent times.

"We request all our valuable customers to get the PAN No. registered by submitting the same to the branch or by sending the scanned copy of the documents duly signed to their respective branch, in case wherein PAN card is not available FORM 60 can be used," the Bank of India said in a communication to its customers.

The above said instructions will be applicable even in KYC compliant accounts, it said, asking customers to furnish PAN/Form 60 for "smooth transactions". Form 60 is a declaration form filed by an individual who does not have a PAN.

The Income Tax department has amended I-T rules and asked banks to obtain permanent account number (PAN) or Form-60 in case PAN is not available, from all account holders. The rule will, however, not apply to Basic Savings Bank Deposit Accounts (BSBDA), which are zero balance savings accounts, including Jan Dhan accounts.

The BSBDAs were introduced to take care of simple banking needs of people, which come with free ATM card, monthly statement and cheque book.

RBI has already said 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. 

News24Bureau/PTI