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If cash deposits to your account(s) total ₹10 lakh or more in a fiscal year, your bank will now report you to the taxman.
In new norms issued by the Income Tax Department, banks have also been asked to flag cash payments of over ₹1 lakh for credit card bills.
Similarly, the Department has also asked for details of cash deposits and withdrawals aggregating over ₹50 lakh a current account of a holder in a financial year.
“The statement of financial transaction for deposits during April 1, 2016 to November 8, 2016 and November 9, 2016 to December 30, 2016 shall be furnished on or before January 31, 2017,” it said.
The CBDT also reiterated its earlier instruction that banks report all cash deposits of ₹2.5 lakh or more made in one or more accounts of a person during November 9 to December 30, 2016.
The directive is a requirement under Rule 114E of the Income Tax Rules, 1962 that calls for furnishing Statement of Financial Transactions and came into force from April 1, 2016.
It, however, comes soon after the government decision to demonetise ₹500 and ₹1,000 notes.
Following it, it had given a 52-day window till December 30, 2016 to deposit all defunct notes but had warned that it would take action against black money hoarders.
Apart from cash payments, the CBDT has also said that payments of over ₹10 lakh by any mode such as cheque or wire transfer to settle credit card dues in a financial year must also be reported.
It had also said that companies or institutions issuing bonds or debentures will have to report payments from any one person of over ₹10 lakh to purchase bonds or debentures in a financial year.
It has also set a similar reporting unit for purchase of shares and mutual funds. Further, buyback of shares from any person for over ₹10 lakh or more will also have to be reported by listed companies.
Property registrars will have to report to tax authorities “purchase or sale by any person of immovable property for an amount of ₹30 lakh or more.”
Purchase of foreign exchange including travellers’ cheque and a forex card aggregating to ₹10 lakh would have to be reported to tax authorities.
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