12 Cash Transactions That Show Up in Your Income Tax Annual Information Statement (AIS) for AY 2025-26:

12 Cash Transactions That Show Up in Your Income Tax Annual Information Statement (AIS) for AY 2025-26 These days, the government is closely watching cash transactions. Many cash dealings are tracked using your PAN or Aadhaar number. If the amount of cash transactions you do is too high or doesn’t match your income shown in your tax return, you might get a penalty or a tax notice. There are 12 types of cash transactions that are reported in the Income Tax Annual Information Statement (AIS) or Taxpayer Information Summary (TIS) for the financial year 2024-25 (assessment year 2025-26). It’s important for taxpayers to be careful about these transactions when filing their income tax returns. The information for the AIS comes from reports like the Statement of Financial Transactions (SFT) filed by banks and other institutions, Form 60/61 submitted when PAN is not provided, and data from TDS or TCS returns filed by those who deduct or collect tax.

Cash Deposits in Accounts other than Current Account (SFT-004)

• If you deposit cash in a savings or other non-current account, the bank or financial institution reports it in Form 61A.
• This information appears in the AIS (Annual Information Statement) of all account holders.

Cash Deposits in Current Account (SFT-003)

• If you deposit cash into a current account, the bank reports it in Form 61A.
• This is also shown in your AIS.

Cash Deposits without PAN (Form 60/61)

• If you deposit cash but don’t provide your PAN, the bank may collect Form 60 or 61.
• Your PAN may still be traced using your Aadhaar or other personal details.

Cash Withdrawals from Current Account (SFT-003)

• If you withdraw cash from your current account, the bank reports it in Form 61A.

Cash Withdrawals from Accounts other than Current Account (SFT-004)

• Sometimes, cash taken out from savings or other non-current accounts is also reported in Form 61A under SFT-004.

Cash Withdrawals – TDS Under Section 194N

• If large cash withdrawals are made, banks may deduct TDS (tax) under Section 194N.
• This is reported in Form 26Q, and the deductor (bank) gives you Form 16A showing these details.

Cash Payments for Goods and Services (SFT-013)

• If you pay cash for buying goods or services, this is reported by the seller or service provider in Form 61A.

Cash Purchase of Bank Drafts, Pay Orders, or Banker’s Cheques (SFT-001)

• When you buy these instruments in cash, the bank reports it in Form 61A.

Cash Purchase of Prepaid Instruments (SFT-002)

• If you buy prepaid instruments (like wallets, gift cards, etc.) using cash, this is reported in Form 61A.

Cash Payment for Bullion and Jewellery (Section 206C)

• If you buy bullion (like gold bars) or jewellery using cash, the seller collects TCS (Tax Collected at Source).
• This is reported in TCS Form 27EQ, and you receive a certificate in Form 27D.

Cash Payment for Purchase of Other Goods (Section 206C)

• If you buy any goods other than bullion/jewellery in cash, and it crosses a certain limit, TCS is collected.
• Reported in Form 27EQ, and the Form 27D is provided to you.

Cash payment for receipt of services (Section 206C)

• If you make large cash payments for services, TCS is also collected.
• Again, it’s reported in Form 27EQ, and you receive Form 27D.