Student
3986 Points
Joined July 2018
1. Annual Information return(AIR) is to be submitted by the bank if the value of the time deposit is more than Rs. 10 lakhs during the FY.
2. However, the bank will not report this transaction u/s 285BA as Specified Financial Transaction (SFT) as this deposit is nothing but a renewal of another time deposit.
3. If the time deposit is renewed then it can be excluded as reporting this again will mean that a new amount was deposited into an account.
4. The exact wordings are as under,
"Other than a time deposit made through renewal of another time deposit". Even if you have transferred the matured amount to your SB account still it is a renewed time deposit. This Rs. 11 lakhs is not from any new source.
5. It will not be reported as a high-value transaction in AIR as per sec 285BA of the act.
Please correct me if the above solution has an alternative view.