PAN Compulsory to Deposit Rs 50000 and Above in #Sikkim

PAN Compulsory to Deposit Rs 50000 and Above in #Sikkim

The State Bank of Sikkim has made it mandatory for account holders to submit a copy of PAN card for a deposit of Rs 50,000 and above.

The rule came into effect from Saturday, officials said.

The bank, which is an autonomous body under Sikkim government and is not regulated by the Reserve Bank of India unlike other banks in the country, had been following the RBI guidelines after the demonetisation drive was announced on November 8.

"Since the announcement, we have been following RBI rules. But we did not ask customers for a copy of PAN card for deposits above Rs 50,000 (unlike other banks). We were also not exchanging notes because the bank does not have enough Rs 100 notes. From yesterday, we made it mandatory to submit a copy of PAN card to deposit Rs 50,000 or more," said the general manager of State Bank of Sikkim (SBS), Phurba Wangdi.

The rule came into force after a notice sent to a Gangtok-based businessman by the IT department of Siliguri enquiring about his deposits at SBS surfaced in social media on Friday, sources said.

The businessman, who is the proprietor of a private Enterprises in Gangtok, had deposited Rs 4,51,000 at SBS in Gangtok on November 13.

The notice dated November 18 and signed by Norbu Bhutia, the deputy director of the income tax unit in Siliguri, has asked the party concerned to appear before him on or before November 25 to elaborate on the source of the money.

"You may also produce the books of accounts along with bills/vouchers of documents which would be useful to explain the cash deposit," it reads.

The notice says if the person (or firm) is liable to pay income tax, then IT returns of the past two years should be produced and if the account holder is a Sikkim Subject Certificate holder or an Old settler (residing in Sikkim from before 1975), evidence should be given.

"We got the letter on Friday afternoon. We are unaware of how a photo of that was uploaded on Facebook," said the buisnessman's brother.

Sikkim Subject Certificate holders are exempted from income tax. Those with Old Settlers documents, however, have to pay taxes.

[Via: Telegraph, Pic: via our partner organization The Voice of Sikkim]