No air reporting for cash deposited upto 2.50 lakhs


Dhirajlal Rambhia (KVO Merau Kutchh)     16 November 2016

Dhirajlal Rambhia
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No AIR Reporting for Cash Deposited upto 2.5 Lacs

CBDT NOTIFICATION NO. 104/2016, Dated: November 15, 2016 [F.No.370142/32/2016-TPL]

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.”.

(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.

Source: courtesy: taxindiaupdates.in

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gekco (B.Com)     19 November 2016

gekco
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Hello Sir, My father has deposited 3 Lakh in his current account in one time. Can you please tell whether all transactions of 2.5 lakh will be reported by bank even if it is in current account or they will reported only after they cross 12.5 lakh limit.

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     19 November 2016

Dhirajlal Rambhia
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1. All the cash deposits aggregating 50K or above in a single day in any account required to be reported.

2. During the period of 10 Nov. to 30 Dec. 2016, total amount exceeding 12.50L in all the current account/s in agreegate, should be reported.

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gekco (B.Com)     19 November 2016

gekco
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Hello Sir, Thank you for your response. Can you please clarify what is meant by reporting every deposit above 50K in single day , Does it mean we will also get notice even if we do not deposit any more amount in current account and way below the 12.5 L limit

avater

Dhirajlal Rambhia (KVO Merau Kutchh)     19 November 2016

Dhirajlal Rambhia
KVO Merau Kutchh 
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Generally, for first AIR reporting (above 50K), notices are not served, unless big amount (particularly savings accounts)

So, in your case it will be compared with your routine transactions in the account, and if any abnormality found, query may arise.

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PUSHP KUMAR SAHU (CA FINAL ASPIRANT)     21 February 2019

PUSHP KUMAR SAHU
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agreed with dhirajlal sir

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