Banks to Report Cash Deposit from during 9th Nov'16 to 30th Dec'16 to Income tax

Banks to Report Cash Deposit from during 9th Nov'16 to 30th Dec'16 to Income tax : Fews days back we heard the statement form The Revenue Se

CA Deepak Gupta

Nov 17, 2016

Last update on Nov 17, 2016

Banks to Report Cash Deposit from during 9th Nov'16 to 30th Dec'16 to Income tax : Fews days back we heard the statement form The Revenue Secretary "We would be getting reports of all cash deposited during 10th Nov to 30th Dec.2016 above threshold of Rs.2.5 lac in each A/C." So here comes the CBDT Notification to confirm the statement of Revenue Secretary. CBDT vide [Notification No. 104/2016][F.No.370142/32/2016-TPL] made Amendment in Rule 114B for compulsory quoting of pan in case of cash deposit exceeding Rs. 50000 in a single day or aggregating to more then Rs. 2.5 lakh during the period from 09.11.2016 till 30.12.2016.

> Earlier Pan was required to be furnished by depositor for cash deposits of Rs. 50000 or more in bank account per day. Now, vide Notification dated 15-11-2016, apart from above requirement even if cash deposited in one time is lesser than 50,000 still if exceeds Rs. 250000 in aggregate, for deposits from 09-11-2016 to 30-12-2016, still PAN is required to be furnished.

Amendment in Rule 114E for filing AIR report as required under section 285BA of Income Tax Act, 1961 wrt reporting by banking company and a cooperative bank on account of aggregate cash deposits in one or more current account of a person in excess of Rs. 12.5 lakhs or Rs. 2.5 lakh or more in one or more account of a person during 09.11.2016 till 30.12.2016.

> Earlier AIR Information was to be filed by Banks to Income tax department, where annual limit for saving account was Rs. 10,00,000 and it was Rs. 50 lacs for current account. But for deposits from 09-11-2016 to 30-12-2016, the deposit limit for AIR Information has been lowered to Rs. 250000/- for saving account and Rs. 1250000 for current account.[Notification No. 104/2016].

Hence PAN to be furnished if cash deposits in bank account during 09-11-2016 to 30-12-2016 exceed Rs. 250000/-. Banks to furnish information of cash deposits during 09-11-2016 to 30-12-2016 by way of AIR information if cash deposit in current account of customer is more than 1250000 and cash deposit in saving account is more than Rs. 250000 during this period.

Below is abstract of NOTIFICATION No. 104/2016-Income Tax

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE CENTRAL BOARD OF DIRECT TAXES NOTIFICATION No. 104/2016-Income Tax New Delhi, the 15th November, 2016

G.S.R 1068(E).- In exercise of the powers conferred by section 285BA, read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:- 1. (1) These rules may be called the Income tax (30th Amendment) Rules, 2016. (2) They shall come into force from the date of their publication in the Official Gazette. 2. In the Income-tax Rules, 1962 (hereinafter referred to as the said rules), in rule 114B, in the Table, for serial number 10 and entries relating thereto the following serial number and entries shall be substituted, namely:-

Sl. No.	Nature of transaction	Value of transaction
(1)	(2)	(3)
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. .

3. In the said rules, in rule 114E, (i) in sub-rule (2), in the Table, after serial number 11 and entries relating thereto the following serial number and entries shall be inserted, namely:-

Sl. No.	Nature and value of transaction	Class of person (reporting person)
(1)	(2)	(3)
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	(i) 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); (ii) Post Master General as referred to in clause (j) of section 2 of the Indian Post Office Act, 1898 (6 of 1898). ;

(ii) in sub-rule (5), the following proviso shall be inserted, namely:- Provided the statement of financial transaction in respect of the transactions listed at serial number (12) in the Table under sub-rule (2), shall be furnished on or before the 31st day of January, 2017. . [Notification No. 104/2016] [F.No.370142/32/2016-TPL] (Dr. T.S. Mapwal) Under Secretary to the Government of India Note:- The principal rules were published vide notification S.O. 969 (E), dated the 26th March, 1962 and last amended vide notification S.O.3399(E), dated 07th November, 2016.

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