HOW MUCH CASH CAN BE DEPOSITED IN BANK, THAT WILL NOT BE REPORTED TO INCOME TAX?
CBEC has issued Notification No. 104/2016 dated 15/11/2016 through which it has added S. No. 12 to the Rule 114E according to which, all Banks are required to report under the ‘Annual Information Report’ to the Income Tax Department of an assessee who deposit Cash in his account between 09-11-2016 to 30-12-2016 for an amount equal to or exceeding the limits mentioned below:-
1. In Current Bank Account – Rs. 12.50 Lakhs (aggregate in one or more current account of a person)
2. In Savings/ Other Bank Accounts – Rs. 2.50 Lakhs [In one or more accounts (other than current account) of a person]
Further, Rule 114 B has been amended to provide that the Banks are required to Obtain PAN Card of a person, if a person deposits a sum of more than Rs. 0.50 Lakhs in one day or Rs. 2.50 Lakhs (aggregate) during the period from 09-11-2016 to 30-12-2016.
NOTE – The content of this document are solely for information purpose. It is suggested to consult a professional for understanding the applicability of this information in the respective scenario based on the facts of the specific case.