Income Tax Department Uncovers Thousands of Non-PAN Accounts in J&K Bank with Substantial Transactions
The Investigation Wing of the Income Tax Department has identified a significant number of non-Permanent Account Number (PAN) accounts across multiple branches of the Jammu and Kashmir Bank, associated with transactions totaling lakhs of crores of rupees. This effort appears aimed at circumventing tax obligations by keeping large sums of money outside official scrutiny.
According to reliable sources, investigators from the Income Tax Department conducted a thorough analysis of data from various branches of Jammu and Kashmir Bank in Srinagar, revealing notable irregularities.
“Thousands of accounts across different categories have been found unlinked to PANs, relying solely on Form 60. Nevertheless, these accounts have conducted transactions worth lakhs of rupees each financial year. Furthermore, they hold credits amounting to lakhs of crores,” the sources reported.
Additionally, for the fiscal years 2021-22 to 2023-24, the data provided by Jammu and Kashmir Bank has allowed officials to categorize Government-Linked Accounts, Current Accounts, Loan Accounts, and more, in order to identify private accounts lacking PAN links but possessing substantial credits. Cases requiring further probing into the source of funds have been marked for detailed investigation.
With the staggering number of non-PAN accounts associated with significant transactions, accounts with credits exceeding Rs 50 lakh have been pinpointed. Reports indicate that over 12,000 Government-Linked Accounts and Current Accounts feature such credits, along with more than 10,000 private accounts with similar amounts.
The findings disclosed that there are upwards of 7,500 non-PAN Current Accounts accumulating significant credits, many of which have exceeded Rs 50 lakh within a financial year. Furthermore, over one lakh non-PAN Saving Accounts maintain considerable balances, with around 10,000 of those accounts also having credits surpassing Rs 50 lakh in the financial period.
In General Small Accounts and NRE/NRO Saving and Current Accounts, substantial funds have been reported, with around 1,900 Basic Savings Accounts showing significant credits from 2021-22 to 2023-24. Additionally, more than 100 accounts recorded credits exceeding Rs 50 lakh.
The findings by the Investigation Wing are set to be forwarded to the Reserve Bank of India (RBI) for necessary actions against Jammu and Kashmir Bank in light of these significant infractions.
The analysis conducted by the Income Tax Department highlights a clear trend of substantial amounts being kept outside the tax framework, necessitating a thorough investigation for action under the Income Tax Act, 1961. Data pertaining to each account holder will be shared with respective Assessing Officers to facilitate verification as mandated by applicable provisions of the Income Tax Act.
Moreover, it has come to the attention of the Income Tax Department that considerable sums are residing in certain accounts related to the National Urban Livelihood Mission, even though this scheme is designed to enhance employment and financial inclusion for the urban impoverished population in Jammu and Kashmir.