PAN TO REMIT CASH OF Rs.50,000 MORE

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This query is : Resolved

thanumalayan (Querist)

27 October 2007 If a person remit cash of Rs.50,100.00 to an account of another person, will he mention his PAN to the Bank?

If an account holder remit cash of Rs.50,100 to his own account, will he mention his PAN to the Bank?

If the Banker failed to receive the respective PAN, what will be the remedy for the Banker? Will he be exonorated from any thing may happen?

Pls explain?

R.V.RAO

R.V.RAO (Expert)

27 October 2007 ACTUALLY THE SYSTEM OF TRACKING HUGE CASH TRANSACTIONS ON THE TAX NETWORK RADAR IS THE GOVT. INTENTION. TO THIS EFFECT BANKING SYSTEM WAS ADVISED BY INCOMETAX DEPT. AND RBI TO REPORT ALL SUCH TRANSACTIONS IN THEIR PERIODICAL REPORTS TO THEIR RESPECTIVE HEAD OFFICES AND SUBMIT THE FORM NOS 15 G AND 15 H TO THE IT DEPT.WHERE BANK CUSTOMERS DECLARE THAT THEIR TOTAL INCOME IS BELOW TAXABLE LIMIT.
THE LIMIT SET WAS RS. 50000 FOR CASH DEPOSITS INTO SAVINGS ACCOUNTS BY INDIVIDUALS.EVEN CASH WITH DRAWALS ARE SUBJECT TO SCRUTINY.AT ONE STAGE CASH TRANSACTION RAX WAS ALSO INTRODUCED BY GOVT. BUT LATERON FOR INDIVIDUAL SAVINGS BANK HOLDERS ,THE PROVISION WAS WITHDRAWN.
SO WE NEED TO SUBMIT PAN NUMBERS TO BANKS FOR SUCH DEPOSITS.THEN IT BECOMES EASY TO TRACK SUCH DEPOSITS AND LINK THEM TO ASSESSEES TAX RETURNS . WE ARE ASKED TO EVEN TO REPORT CASH TRANSACTIONS OF
RS. 1000000 IN A FINANCIAL YEAR IN OUR TAX RETURNS.
IF A CASH DEPOSIT IS MADE FOR RS. 50000 OR MORE THE BANKS DO ASK FOR PAN. BANKS WILL REFUSE TO ACCEPT SUCH EPOSITS WITHOUT PAN.
CUSTOMERS USUALLY REDUCE THE AMOUNT TO BELOW RS. 50000 AND MAKE BALANCE DEPOSIT AGAIN OR NEXT DAY.
IF A BANK FAILS TO COLLECT PAN ,THE MATTER IS REPORTED TO RBI BY IT DEPT.
RBI INTURN ASKS RESPECTIVE BANKS EXPLANATIONS .
SUCH TRANSACTIONS ATTRACT IT DEPT. ATTENTION AND NOTICES ARE ISSUED BY IT DEPT TO SUCH DEPOSITORS.THIS LEADS TO UNEARTHING OF UNREPORTED CASH AND DOUBTFUL AND DUBIOUS TRANSACTIONS.
BANKERS ARE NOT EXONERATED FOR NON COMPLIANCE OF INSTRUCTIONS BY RBI .
RBI MAY EVEN LEVY CASH PENALTIES IF SUCH NONCOMPLIANCE IS CONTINUED.
NOW A DAYS WITHOUT PAN EVEN OPENING BANK ACCOUNT IS DIFFICULT.
EVEN THE PROPERTY REGISTRATION DEPTS. OF STATE GOVTS. ALSO REPORT TRANSACTIONS OF PROPERTY TO IT DEPT.ANY SUCH PROPERTY TRANSACTIONS OF THE VALUE OF RS. 30 LAKHS OR MORE NEED TO BE REPORTED EVEN BY ASSESSEES IN THEIR TAX RETURNS.
R.V.RAO

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