New Tax Reporting for High Value Transactions

In order to check black money, the Central Board of Direct Taxes (CBDT), the apex policymaking body of the Income Tax Department, has notified norms under which cash receipts and high value transactions beyond a certain threshold will have to be reported to the income tax authorities with effect from April 1.

Under the new norms, cash receipts, purchase of shares, mutual funds, immovable property and term deposits, and sale of foreign currency will have to be reported to the tax authorities in a prescribed format - Form 61A.

The Finance Ministry notification said the registrar will have to report purchase and sale of all immovable property exceeding Rs 30 lakh to I-T authorities.

It further specified that professionals will be required to inform the tax department of receipt of cash payment exceeding Rs 2 lakh for sale of any goods or services.

As regards bank deposits, the notification said banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more accounts of a person.

The same threshold will apply for term deposits in banks, but would exclude renewal of term deposits. These norms will also cover deposits and withdrawals made in Post Office accounts.

It further said that banking companies or financial institutions will also have to report to the authorities payments made by a person aggregating to Rs 1 lakh or more in cash or Rs 10 lakh or more by another mode against bills in respect of one or more credit cards in a financial year.

The notification has also laid down the reporting norms for cash payment of Rs 10 lakh or more in a financial year for purchase of bank drafts or pre-paid instrument issued by the Reserve Bank of India (RBI).

Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more current account of a person will have to be reported by the bank to the I-T authorities.

A company will be required to report receipt of Rs 10 lakh or more from a person in a financial year for acquiring bonds, debentures, shares or mutual funds.

The Form 61A, the notification said, will have to be furnished to Director of Joint Director of Income Tax (Intelligence and Criminal Investigation) through online filing. more  

View all 12 comments Below 12 comments
Dr Bandil ji--- IS BY ALL YOUR SUggESSIONS DID POLLUTION DECREASED ___ JUST TELL IN YES OR NO ---you are talking about to increase cost. I live at Uttrakhand I have nothing to do with increase or decrease. -----See about school going boys/girls office going persons ---You r showing that you have money ---think only think for reducing pollution as yesterday supre court disallowed entry of heavy trucks or so yssethi more  
We bought car for safety, facility, and emergency need but delhi government forcing us to double the cost for these facilities. DrKamal Kishore Bandil There are thousands other ways to control pollution. Like · Reply · 8 mins DrKamal Kishore Bandil DrKamal Kishore Bandil increase the cost of polluting fuel. Unlike · Reply · 1 · 7 mins DrKamal Kishore Bandil DrKamal Kishore Bandil raise registration of vehicle fees costly. Unlike · Reply · 1 · 6 mins DrKamal Kishore Bandil DrKamal Kishore Bandil apply pollution tax on vehicle. Unlike · Reply · 1 · 6 mins DrKamal Kishore Bandil DrKamal Kishore Bandil fine people burning garbage on road or premises. Unlike · Reply · 1 · 5 mins DrKamal Kishore Bandil DrKamal Kishore Bandil do not allow wood as domestic fuel. Unlike · Reply · 1 · 4 mins DrKamal Kishore Bandil DrKamal Kishore Bandil do not allow wood and coal burning for fighting cold. Unlike · Reply · 1 · 3 mins DrKamal Kishore Bandil DrKamal Kishore Bandil One day I am going in car and next day forced to use public transport is too tortuous. Unlike · Reply · 1 · 2 mins DrKamal Kishore Bandil DrKamal Kishore Bandil Keep the utility idle is worst solution. Like · Reply · 1 min DrKamal Kishore Bandil DrKamal Kishore Bandil Impose heavy penalties on those parking their car on roads. Like · Reply · 1 min DrKamal Kishore Bandil DrKamal Kishore Bandil Increase the cost of parking heavily. People will realise the worst-ness of odd-even formula when two wheeler owners are also forced to follow the odd-even formula. Because car owner are not in majority. more  
Very good move. If implemented promptly, will have good result more  
What is need to have currency notes of Rs. 500/- and Rs. 1000/-? All transactions exceeding Rs. 5000/- should be made by using debit/credit cards or wireless transfers only. more  
Good Move but effective only if implemented without discrimination & not on Face Value of Offender. more  
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