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Must Know: Financial transactions that will be reported

The income tax authorities have set up an e-platform through which banks can report the transactions to them
By OLM Desk | April 06, 2017

It is not just about cash transactions that will get reported from this financial year, there is a lot more that gets added to the list of financial transactions that will be reported through the e-platform set up by the income tax department. Most of the reporting is from the demonetisation phase, however, cash deposits during April 1 – Nov 9, 2016 in any account that are suspicious will also be reported.

Cash deposits: Banks will report cash deposits aggregating to Rs 10 lakh or more in a financial year, in one or more accounts (other than a current account) of a person, including FDs other than renewals.

Credit card settlements: Amount above Rs 1 lakh paid towards credit card bills by cash and an aggregate Rs 10 lakh settlement on credit cards through any mode will be reported.

Demonetisation deposits: Report all cash deposits of Rs 2.5 lakh or more made in one or more accounts of a person during November 9 to December 30, 2016. In case of current accounts, this limit is up to Rs 12.5 lakh or more during the same period.

Bonds and debentures: Companies or institutions have to report receipt from any person of an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures. A similar limit is also set for reporting purchase of mutual funds units or buyback of shares.

Property registrars: Need to report purchase or sale of immovable property by any person for Rs 30 lakh or more.

Foreign exchange: Purchase of foreign exchange including travellers’ cheque and a forex card aggregating to Rs 10 lakh will be reported.




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