12 Cash Transactions to be reflected in Income Tax Annual information Statement [AY 22-23]

These days Government has become vigilant in the case of Cash Transactions. Various Cash Transactions are being traced through means of PAN and Aadhar. These Transactions are then penalized or you may face Tax Scrutiny if they exceed the Limit given in Income Tax or are not in sync with your Income Tax Return.

Here are 12 types of cash transactions that are reported in the Income Tax Annual Information Statement (AIS)/ Taxpayer Information Summary (TIS) for FY 2021-22 or AY 2022-23. Taxpayers should be cautious about the same while filing their Income Tax Return [ITR].

The Source of Information for AIS is the Statement of Financial Transaction (SFT), Form 60/61 filed by Banks, and data of TDS or TCS Returns.

Cash deposits in an account other than the current account (SFT-004)

Information pertaining to cash deposits in an account other than current account is reported by reporting entity in form 61A. The information will be shown in AIS of all account holders.

Cash deposits in current account (SFT-003)

Information pertaining to cash deposits in current account is reported by reporting entity in form 61A.

Deposit in cash (Form 60/61)

Cash Deposits may be reported in Form 61 if PAN is not furnished by the transacting party. PAN is populated based on aadhaar and other attributes of the person.

Cash withdrawals from current account (SFT-003)

Information pertaining to Cash withdrawals from current account is reported by reporting entity in form 61A.

Cash withdrawals from account other than current account (SFT-004)

Sometimes, cash withdrawals from accounts other than current account are reported by the Reporting Entity in SFT-004.

Cash Withdrawals (Section 194N)

Information pertaining to Cash withdrawals is reported by reporting entity through TDS statement 26Q. This information is provided by the deductor to the taxpayer in Form 16A.

Cash payments for goods and services (SFT-013)

Information pertaining to Cash payments for goods and services is reported by reporting entity in form 61A.

Purchase of bank drafts or pay orders or banker’s cheque in cash (SFT-001)

Information pertaining to Purchase of bank drafts or pay orders or banker’s cheque in cash is reported by reporting entity in form 61A.

Purchase of prepaid instruments in cash (SFT-002)

Information pertaining to Purchase of prepaid instruments in cash is reported by reporting entity in form 61A.

Cash Payments for purchase of Bullion and Jewellery (Section 206C)

Information pertaining to purchase of bullion and jewellery is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.

Cash Payment for purchase of any other goods(other than bullion/jewellery) (Section 206C)

Information pertaining to purchase of other goods is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.

Cash Payment for receipt of service (Section 206C)

Information pertaining to purchase of other services is reported by tax collector in TCS form 27EQ (quarterly statement). This information is provided by the collector to the taxpayer in Form 27D.