The tax department has asked banks to report deposits in any account aggregating Rs 10 lakh in a year, as well as cash payments of Rs 1 lakh or more on credit card bills. In a January 17 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 Rs 2.5 lakh or more made in one or more accounts of a person during November 9 to December 30, 2016. Post demonetisation of old 500 and 1,000 rupee notes, the government had allowed the junked currency to be deposited in bank accounts during a 50-day window ending December 30, 2016.
“Cash deposits during the period November 9, 2016 to December 30, 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. Also, cash deposits during April 1, 2016 to November 9, 2016 in any account that are reportable should also be intimated to the the tax authorities by January 31, 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.
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 cheque or wire transfer) to settle credit card dues in a financial year, CBDT said. It made a company or institution issuing bonds or debentures to mandatory report receipt from any person an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures. 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 Rs 10 lakh or more in a financial year” will need to be reported by a listed company, the notification said. 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 Rs 30 lakh or more.”
Also, cash payment exceeding Rs 2 lakh for sale of goods or services of any nature would also have to be reported, the CBDT said. One or more time deposits (other than a time deposit made through renewal of another time deposit) of a person aggregating to Rs 10 lakh or more in a financial year of a person will also need to be reported, the CBDT said. Payment made in cash for purchase of bank drafts or pay orders or banker’s cheque of an amount aggregating Rs 10 lakh or more in a financial year as well as payments made in cash aggregating Rs 10 lakh or more during a year for purchase of pre-paid instruments issued by RBI need to be reported. A banking company or a cooperative bank would also have to report cash deposits or cash withdrawals (including via bearer’s cheque) aggregating Rs 50 lakh or more in a financial year, in or from one or more current account of a person.