CASH DEPOSITS ABOVE Rs. 10 LAKH OR MORE

Now the Government has come out one more requirement.  It has advised banks to inform deposits made in any account which totals upto Rs 10 lakh in a year, let apart, they should also submit the details of cash payments of Rs 1 lakh or more on credit card bills.   It was on January 17 that the Central Board of Direct Taxes (CBDT) made it compulsory for a Banking company or a co-operative Bank to report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts ( which excludes a Current Account and a Time Deposit account) of a person.   Details of the Cash Transactions which are required to be reported are:

• Cash deposits during the period November 9, 2016 to December 30, 2016 totalling to Rs 12.50 lakh or more in one or more current accounts of a person, (and)
• Cash Deposits of Rs 2.5 lakh or more in one or more accounts (other than a current account) of a person during the above mentioned period.
• Apart from this, Cash Deposits during April 1, 2016, to November 9, 2016 in any account that are reportable should also be informed to the tax authorities by January 31, 2017.
• An e-platform  has been put up by CBDT for such reporting.

In this regard,

1. The CBDT has on on November 16, had asked banks and post offices to provide details of all deposits above Rs 2.5 lakh in savings accounts, and those in excess of Rs 12.5 lakh in current accounts, made during the 50-day period permitted for depositing demonetised currency notes.
2. Also CBDT had released a notification, stating that commercial banks, co-operative banks and post offices should report any cash deposits exceeding Rs 50,000 in a single day, or aggregating to more than Rs 2.5 lakh covering the period from November 9 to December 30, 2016.
3. The dead line for filing of the Statement of Financial Transaction by the Banks and post was tabled to be January 31, 2017.
4. Also with the January 17 notification, the CBDT has made it obligatory 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 (which excludes a Current Account and a Time Deposit account) of a person.
5. Also reporting should be made about payments of an amount aggregating to Rs one lakh or more in cash, along with payments of Rs 10 lakh or more made by any mode (including cheque or wire transfer), towards settling credit card dues in a year.
6. Requirement of reporting of purchase of foreign exchange, including traveller’s cheque and forex card, aggregating to Rs 10 lakh or more has also been made mandatory.
7. Additionally, the Property Registrar should inform sale or purchase by any person of immovable property for an amount of Rs 30 lakh or more to the tax authorities.