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I-T department expands list of deposits, transactions under scrutiny

  • The income tax department has expanded the list of high-value financial transactions that have to be reported by banks, companies, post offices and businesses to include cash deposits of Rs 2.5 lakh or more during the demonetisation period.

    While the Rs 2.5 lakh threshold is for deposits made by individuals across all bank accounts, the floor for current account holders has been fixed at Rs 12.5 lakh. Banks will also have to report all cash deposits and fixed deposits above Rs 10 lakh made during the year.

    For these depositors, the CBDT, which released the detailed guidelines on Tuesday, has also sought details of all deposits made since April. Bank drafts and prepaid instruments of Rs 10 lakh or more purchased using cash will also have to be reported to the tax department.

    The latest measures from the tax department are expected to help honest tax payers breathe easy as a threshold has been fixed below which the authorities are unlikely to harass individuals.
     

    OUR TAKE

    The fresh guidelines from the income tax department are part of the government's drive against black money. This will help in ensuring that individuals and companies donot turn black money into white using the banking and financial system and  will also protect the honest tax payers from harassment.


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