ANY HIGH VALUE CASH TRANSACTION IN BANK ACCOUNT? YOU MAY RECEIVE A NOTICE BY THE IT DEPT.

Firstly lets understand what is a High value cash Transaction?

With an aim to curb black money mess and to track high value cash transactions, the government has decided to implement new reporting guidelines w.e.f November 2016. As per the govt’s notification, all goods & services providers have to report to the IT department about high value cash transactions & cash receipts.

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

  • Immovable Property: The Registrar of properties will have to report purchase & sale of all immovable property exceeding Rs 30 Lakh to the Income Tax authorities.

  • Professionals: The 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.

  • Cash Deposits in Banks: Banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more accounts (other than Current Account / Time Deposit) of a person.

  • Term Deposits in Banks:  Banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more Time Deposit accounts of a person (other than a time deposit made through renewal of another time deposit). These norms will also cover deposits and withdrawal made in Post Office Account.

  • Deposits in Current Accounts: 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.

  • Any cash payment of Rs 10 lakh or more in a financial year for purchase of bank drafts or pre-paid instrument issued by RBI will also be reported.

  • Investments in Financial Securities : A company has to report receipt of Rs 10 lakh or more from a person/an investor in a financial year for acquiring bonds, debentures, shares or mutual funds (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund).

  • Cash Deposits during 9th Nov to 30th Dec, 2016: Cash deposits during the period 09thNovember, 2016 to 30th December, 2016 aggregating to –

    • (i) Rs 12.5 Lakh or more, in one or more current account of a person (or)

    • (ii) Rs 2.5 Lakh or more, in one or more accounts (other than a current account) of a person.

In addition to the above list, quoting your PAN is now mandatory for many financial transactions. Based on this data also the IT department can track your financial transactions.

If you receive any notice by the IT department for any high value cash transaction, you can follow these steps to response to the IT department

Step 1: Log in to e-filing portal https://incometaxindiaefiling.gov.in. 

Step 2: If you are registered, fill in your details and click on the compliance tab. If not, register yourself and proceed.

Step 3: Under the Compliance tab click on “ Accounts with Cash Transaction” link. You may also find this option under “Quick Link”. This will direct you to “ Bank/ Financial Account(s) with substantial Cash Transaction page.

Step 4: Check the details of the bank account related to you.

Step 5: Please select your reason amongst the one given in the page and make the submission. Keep the acknowledgement for your record.

Step 6: In case you make a mistake in submission of response, you may further revise it by login to e-filing portal.

In case you are having trouble we can help you. Please contact us on +91 7022251221, 080-40463170 or drop in an email at info@unicomply.com

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