After its recent demonetisation drive the tax department has clarified the following rules regarding CASH DEPOSITS.
- Quoting of PAN is mandatory where cash deposits exceed Rs 50,000 per day.
- Quoting of PAN is mandatory if total deposits from 9th Nov 2016 to 30th December 2016 exceed Rs 2.5L.
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.