According to a press release issued on 8 January, the Central Board of Direct Taxes (CBDT) has amended the income-tax rules and asked all banks to link the Permanent Account Number (PAN) or Form No. 60 (where PAN is not available) to all existing bank accounts by 28 February 2017, if not done already. However, the ‘Basic Savings Bank Deposit Accounts’ (BSBDA) are excluded from the necessary compliance norms of this rule.
BSBDA are small bank account and they are subjected to various limitations. For instance: total credits in such accounts should not exceed Rs1 lakh in a year, the maximum balance in the account should not exceed Rs50,000 at any time and the total withdrawals (cash or transfers) should not exceed Rs10,000 in a month.
