IT Dept Is Tracking Transactions: Banks To Report Cash Deposits

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The income tax department has asked banks to report deposits in any account aggregating Rs 10 lakh in a year, as well as cash payments of Rs1 lakh or more on credit card bills.

In a 17 January notification, the Central Board of Direct Taxes (CBDT) listed cash transactions which need to be reported to tax authorities and set up an e-platform for doing so. It reiterated its November 2016 instruction asking banks to report all cash deposits of Rs2.5 lakh or more made in one or more accounts of a person during 9 November to 30 December 2016.

Post demonetization deposits

Post demonetization of old Rs 500 and Rs 1,000 notes, the government had allowed the junked currency to be deposited in bank accounts during a 50-day window ending 30 December 2016. "Cash deposits during the period 9 November 2016 to 30 December 2016 aggregating to Rs 12.50 lakh or more in one or more current account of a person (and) Rs 2.5 lakh or more in one or more account (other than a current account) of a person" will have to be reported to tax authorities, it said, reports PTI. Cooperative Banks' Cash Records Tampered With Post Demonetisation

January 31 deadline

Cash deposits during 1 April 2016 to 9 November 2016 in any account that are reportable should also be intimated to the tax authorities by 31 January 2017, the notification said. It made it mandatory for a banking company or a cooperative bank to report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (other than a current account and time deposit) of a person.

CBDT statement

Payments made by any person of an amount aggregating to Rs 1 lakh or more in cash towards credit card dues will have to be reported. Also to be reported are Rs 10 lakh or more of payments made by any mode (including a cheque or wire transfer) to settle credit card dues in a financial year, CBDT said. Don't Discuss Official Things On Social Media: CBDT To Tax Officials

Bonds and debentures

It made a company or institution issuing bonds or debentures to mandatory report receipt from any person an amount aggregating to Rs10 lakh or more in a financial year for acquiring bonds or debentures.

Mutual Funds

A similar limit was set for reporting purchase of shares and mutual funds. "Buy back of shares from any person (other than the shares bought in the open market) for an amount or value aggregating to Rs10 lakh or more in a financial year" will need to be reported by a listed company, the notification said.

Forex card and travellers cheque

Purchase of foreign exchange including travellers cheque and a forex card aggregating to Rs 10 lakh would have to be reported to tax authorities. Property registrar will have to report to tax authorities "purchase or sale by any person of immovable property for an amount of Rs30 lakh or more." 5 Must Know Things On Currency Exchange 

Read more about: income tax, bank, cash, deposit, currency ban, cbdt
Story first published: Friday, January 20, 2017, 15:20 [IST]
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