Report cash deposits above Rs 10 lakh in a FY: I-T to banks

Reiterating its November 2016 instruction, the Central Board of Direct Taxes (CBDT) in a notification dated January 17, has also asked 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, the 50-day window for deposits that was provided by the government following its decision to scrap high-denomination currency notes of Rs 500 and Rs 1,000.

“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 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.

The tax department has also made it mandatory for a company or institution issuing bonds or debentures to report receipts from any person an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures. A similar limit has been 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 will have to be reported, the CBDT’s notification said.

Banks will also have to report 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, 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 prepaid 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.