Modi orders to scrutinize all cash deposits above Rs 2.5 lakh made before 9 November

People who thought they are relieved as they deposited cash amounting to Rs 2.5 lakh or above before 9 November are in trouble. The Finance Ministry has directed banks and post offices to provide information cash deposits during April 1, 2016 to November 9, 2016 for those accounts where there have been cash deposits during the demonetisation period - November 9, 2016 to December 30, 2016 - aggregating to: (i) Rs 12.5 lakh or more, in one or more current account of a person; or (ii) Rs 2.5 lakh or more, in one or more accounts (other than a current account) of a person. It would appear that this data may be used for comparative purposes to see the deposit history of the person.

The ministry has also asked the people with savings accounts in banks and post offices who have not given their PAN or Form 60 till date must do so by February 28, 2017.
The above directives are contained in a notification issued by the Central Board of Direct Taxes (CBDT), finance ministry, on January 6, 2017.

It may be mentioned that the directive about compulsory providing of PAN appears aimed at ensuring that all banks accounts, except specified time deposits and BSDBAs, are linked with PAN of the holder. In some cases bank accounts may exist where PAN was not provided either because the accounts are very old and were opened at a time when PAN quoting was not compulsory. Some accounts may lack PAN due to other reasons e.g salary accounts opened prior to compulsory quoting of PAN etc. The notification however clarifies that this deadline for providing PAN does not apply to those holding time deposits mentioned at Sr No 12 of Table in Rule 114B or Basic Saving Bank Deposit Accounts (BSDBA).