Cash deposit of Rs 2.5L or more will now be reported in Form 26AS

After its recent demonetisation drive the tax department has clarified the following rules regarding CASH DEPOSITS.

PAN requirements

  • Quoting of PAN is mandatory where cash deposits exceed Rs 50,000 per day.

(No change)

  • Quoting of PAN is mandatory if total deposits from 9th Nov 2016 to 30th December 2016 exceed Rs 2.5L.

(New Rule)

 

Therefore, even if you make deposits of less than Rs 50,000 per day but your total during the specified period exceeds Rs 2.5L those transactions will require PAN.

 

AIR reporting requirements – reported to income tax department

  • Deposits made in excess of Rs 2.5L from 9th Nov 2016 to 30th December 2016 in accounts (other than current accounts) to be reported in AIR (Annual Information Report).

[Earlier limit for AIR reporting was Rs 10lakhs or more in one financial year].

 

  • Deposits made in excess of Rs 12.5L from 9th Nov 2016 to 30th December 2016 in current accounts to be reported in AIR (Annual Information Report).

[Current accounts were not part of AIR reporting earlier]

As per notification from income tax department 104/2016 dated 15th November 2016

 

ALL AIR transactions are reported in Form 26AS – Find out more about Form 26AS HERE.

More reading – Is the tax department tracking my 500rs and 1000rs currency deposits?

 

 

2 Responses to Cash deposit of Rs 2.5L or more will now be reported in Form 26AS

  1. ashok November 16, 2016 at 9:19 pm #

    Sir I have IT return file from 4years,per year 2.4Lacks incom,what amount can i deposit.

    • cleartax-team November 17, 2016 at 12:01 pm #

      If you have not filed income tax returns for FY 2014-15 and FY 2015-16, you can still e-file them.

      As per the latest announcements, a maximum of Rs 2.5lakhs can be deposited by you. The income tax department is likely to seek explanation for deposits in excess of Rs 2.5lakhs. Those which are not justified may attract penalty. However, we are awaiting further details from the govt regarding tax and penalty on cash deposited above Rs 2.5lakhs. Would you prefer to speak with our experts? Take a look here – https://cleartax.in/s/ask-an-expert-plan/?ref=homepage-banner-click