Income Tax Department is watching transactions worth Rs. 2.5 lakh or more!

With the recent 30th amendment in the Income Tax Rules, 1962 dated 15.11.2016, Rule 114B relating to quoting of PAN has been substituted as below:

S.No. Nature of transaction Value of transaction
10. Deposit with, – (i) a banking company or a cooperative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); (ii) Post Office. Cash deposits, – (i) exceeding fifty thousand rupees during any one day; or (ii) aggregating to more than two lakh fifty thousand rupees during the period 09th November, 2016 to 30th December, 2016.

Further, Rule 114E relating to furnishing of statement of financial transaction has also been amended to insert the following in sub-rule (2):

S.No. Nature and value of transaction Class of person (reporting person)
12. Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to ? (i) twelve lakh fifty thousand rupees or more, in one or more current account of a person; or (ii) two lakh fifty thousand rupees or more, in one or more accounts (other than a current account) of a person.
  1. A banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act);
  2. (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898).;

Therefore, depositing Rs. 2.5 lakhs or more in a saving account and Rs. 12.5 lakhs in a current account during 09.11.2016 to 30.12.2016 shall be reported to Income Tax department. To read more, refer our bloghttps://blog.tax2win.in/income-tax-department-watching-transactions-worth-rs-2-5-lakh/ [text-blocks id=”get-ca-assistance”]

2 responses to “Income Tax Department is watching transactions worth Rs. 2.5 lakh or more!”

  1. Department has gone crazy, I hope that they should not appoint AO for every citizen to watch out his spendings and earnings.

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