These Transactions will be Reported to Income Tax Department

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These Transactions will be Reported to Income Tax Department

Now Banks have to report the cash deposit of Rs. 10 lakh or more in one financial year. Be it bank depositcredit card bill payment or property transactions financial institutions and other entities will have to report such transactions to the Income Tax department. This notification has come on January 17 from the tax department. For this, Income tax authorities have set up an e-platform through which banks and other institutions can report the transaction to the income tax department.
Highlights:
  1. Cash payment of Rs. 1 lakh or more for credit card bills will be tracked.
  2. Fixed deposits of one person upto Rs. 10 lakh or more in one person’s accounts will be reported.
  3. purchase of foreign exchange aggregating of Rs. 10 lakh or more will be reported to tax authorities.

Transactions which will be reported to the Income Tax Department

  1. If you deposit cash Rs. 10 lakh or more in one financial year, banks are supposed to report to the income tax department for scrutiny.
  1. Fixed deposits other than renewal of a person aggregating to Rs. 10 lakh or more of a person in one financial year will also have to be reported.
  1. Cash payment of Rs. 1 lakh or more for credit card bills have to be reported. If the payment is Rs. 10 lakh or more by any mode (cheque or wire payment) in one financial year also to be reported to income tax authorities for scrutiny.
  1. Tax department also repeated its November 2016 instruction. According to this instruction banks will have to report all cash deposits of Rs. 2.5 lakh or more made in one or more accounts of one individual during November 9 to December 30 2016.
  1. For current accounts banks have to report deposits of Rs. 12.5 lakh or more during demonetisation period. After the announcement of demonetisation of high value currency Rs. 500 and Rs. 1, 000 rupee notes, the government had allowed the junk currency to be deposited in bank accounts during a 50- day window which ended on Dec. 30, 2016.
  1. According to the notification cash deposits during April 1, 2016 to November 9, 2016 in any account that are supposed to be reported should also be intimated to the tax authorities by January 31, 2017.
  1. Companies or institutions have to report receipt from any person an amount aggregating Rs. 10 lakh or more in a financial year for acquiring bonds or debentures.
  1. Similar limit should also be reported to purchase of the units of mutual funds or buyback of shares.
  1. Purchase of foreign exchange including travellers’ cheque and a forex card aggregating to Rs. 10 lakh will have to be reported to tax authorities.
  1. As per notification, property registrars 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.
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