In view of recent amendments brought into Income Tax Rules on furnishing information to the income tax department, the cooperative banks “may face some issues” to report information data as required by law enforcement department, an RBI official said on Monday.
According to income tax officials, banks, cooperative banks and post offices have to furnish information to the department about cash deposits in individual accounts for the period of both pre- and post demonetisation.
“All the commercial banks in the country are CBS (core banking system) enabled and they have robust computer systems in place. The ability to capture transaction of any type, take out a report and then report it to the appropriate authority was never in the doubt. I am sure for the commercial banks reporting the data as required by the Income Tax department and other law enforcement departments should not be a problem.”
“Maybe in case of cooperative banks, I am not very much sure…good number of cooperative banks is still to be computerised. They do not have very robust computer system working in their offices. Perhaps they may face some issues,” said Reserve Bank of India’s (RBI) Deputy General Manager Manish Parasar.
He also said there should not be a much of a problem with the kind of infrastructure in terms of computer system that the banking industry has today.
Income Tax Director (Intelligence and Criminal Investigation), Kolkata, Vikram Sahay said: “Central Board of Direct Taxes stated that in respect of cash deposits aggregating Rs 2.5 lakh and more in an account and cash deposits aggregating Rs 12.5 lakh and more in a current account between November 9 to December 30, 2016, has to be reported by all scheduled commercial banks, cooperative banks and post offices by January 31, 2017.”
Income Tax Department’s Additional Director Priyabrata Pramanik said that statement of financial transactions should be reported by banks, cooperative banks and post offices with PANs or Form 60.
Income Tax Rules have been amended to provide that bank should btain and link PAN or Form No 60 (where PAN is not available) in all existing bank accounts, other than Basic Savings Bank Deposit Accounts (BSBDA), by February 28, 2017, if not already done, a Finance Ministry statement said.