Friday, 20 January 2017

Banks told to report deposits over Rs 10 lakh a year-The Total Investment & Insurance Solutions

Contact Your Financial Adviser Money Making MC
20 January 2017

In yet another measure related to the recent demonetisation, the government 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. The Total Investment & Insurance Solutions

In a January 17 notification, the Central Board of Direct Taxes (CBDT) 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 Total Investment & Insurance Solutions

Detailing the cash transactions which need to be reported to the authorities, the notification listed "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 accounts of a person, (and) Rs 2.5 lakh or more in one or more accounts (other than a current account) of a person".

Besides, 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. The Total Investment & Insurance Solutions

The CBDT has also set up an e-platform for the purpose of effecting such reporting.

Prime Minister Narendra Modi had on November 8 announced demonetisation of Rs 1,000 and Rs 500 notes, saying the move was needed to eliminate black money, counterfeit notes and terror financing. Citizens were given time until December 30, 2016, to deposit the demonetised currency in banks. The Total Investment & Insurance Solutions

On November 16, the CBDT had asked banks and post offices to report 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 window for depositing demonetised high-value notes. The Total Investment & Insurance Solutions

It had notified that commercial banks, co-operative banks and post offices will have to report any cash deposits exceeding Rs 50,000 in a single day, or aggregating to more than Rs 2.5 lakh during the period from November 9 to December 30, 2016. The Total Investment & Insurance Solutions

Banks and post offices were notified to file a relevant statement of financial transaction on or before January 31, 2017. The Total Investment & Insurance Solutions

By the January 17 notification, the CBDT has also 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 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 will also have to reported. The Total Investment & Insurance Solutions

Purchase of foreign exchange, including travellers cheque and forex card, aggregating to Rs 10 lakh or more would also need to be reported. 


Moreover, the Property Registrar will have to report sale or purchase by any person of immovable property for an amount of Rs 30 lakh or more to tax authorities, the notification said.The Total Investment & Insurance Solutions

No comments:

Post a Comment