Does A Bank Share PAN Details with IT Department Yearly?

[magnet]

Well our family have some dormant accounts in banks like DCB, State Bank etc.

They haven't been operated from past 5 years to 15 years period.

We do get statement quarterly or half yearly but no transaction in same can be done as they have turned dormant.

The sum in across them is across 4-5 lakhs in 6-7 accounts.

They weren't operated because of shifting of my place, shifting of branch, non-cordial staff etc.

Now I made visit to them and they said you can't close your account straight away but first make it active and than re submit documents needed to open an account like light bill,voter id card, PAN card etc.

Now what I am worried is when we stopped using their account the sum was hardly 70-90k but over a period of time money reinvested in fixed deposits have increased the sum.

But we haven't shown this account in any of our family members returns.

What I am worried is if we re-activate and close the account still we will be sharing our PAN details.

Would that have any affect on our returns? I mean will the IT people start harassing us. Or to be frank does every year banks share its PAN data with It.

Or only those data where a particular data (like cash deposit of more than 5 lakhs in account etc etc)

 

[PGDIMES]

Have you ever filled 15G/H form(s) for these dormant accounts? It is a normal practice for the IT dept. to make TDS from the accounts which accumulate more than 10K in interest per annum if no declaration in those forms are submitted. Plz check whether the same has happened in your accounts.

 

[magnet]

Nope No activity whtsoever.

I am visitng the branch first time in my life.

These were the accounts open by my parents and in last 5 years they never even paid a visit there.Even if that have happened ? Whats the logic of asking same?

 

[columbus]

Nope No activity whtsoever.

I am visitng the branch first time in my life.

These were the accounts open by my parents and in last 5 years they never even paid a visit there.Even if that have happened ? Whats the logic of asking same?

Apart from PAN ,so other banks asking customers to fill KYC
(Know Your Customer) details.

 

[PGDIMES]

Dear Magnet,

First make some transactions in those accounts to make them active. If you haven't files 15g/h, most probably TDS has already been done. So no tax liability, I hope. You can ask for the transaction details of those accounts to the branch manager (The transaction details may be not updated in your passbooks. This happens in many branches as most of the accounts were upgraded from manual to computerised). Close the accounts only after resolving all the valid concerns. Best wishes.

 

[Logik]

well according to RBI circular, the KYC norms for saving accnts are more tight now.
i wonder how come ur banks never mailed u regarding the filling of new KYC docs. my ma has this bank accnt , which was in active for like 5 yrs. then one day, out of nowhere we received the letter regarding docs to be submitted for KYC. we did the same & things are fine now.

Now whether the bank will share ur pan? i don't know.

but what i know: no bank shares its customer accnt balance/transactions, unless asked by the IT department specifically.

so here what u shud do.......just get things in accnt rolling. make some small transactions. don't close all the accounts at once, but say at regular interval of time.

Lastly i think its best to take a pro advice on this issue.

Logik

 

[magnet]

Fine ill check with the bank and will ask a friend who used to work in a bank regarding same and will get back here.

By the way now i am thinking to keep it active but with minimum balance say if its 5k ill keep 7k in account.But not planning to add same in my return.
I feel now that keeping the account active is more helpful than closing as it takes lot of time to open new.Plus it can help to keep extra cash in them rather than using primary account for home security reason for shorter period.

 

[veluri1967]

There are some issues to be understood clearly here.

1. Tax implications. Since the deposits are in the name of parents, they are not concerned to you. If at all they are to be taxed, it will be in your parents returns. Also, by now, they must be old enough to enjoy Senior Citizen Status. Thatz a booty to get maximum exemptions.

2. Dormant a/c. If the accounts are in SBI, the process of making it operative is very easy. Asking for some proof, is only to determine, the a/c is activated by genuine customer. No fear about TDS. Since you have not drawn any interest because you have no information about them, consult your tax consultant to include interest earned as cumulative interest in your next tax return. Simultaneously ask the bank to deduct the TDS on your interest.

Better consult your Tax consultant who will guide you through the process.