In order to check black money, the CBDT has notified norms under which cash receipts and high value transactions beyond a certain threshold will have to be reported to the Income Tax authorities with effect from April 1.
Under the new norms, cash receipts, purchase of shares, mutual funds, immovable property, term deposits, and sale of foreign currency will have to be reported to the tax authorities in a prescribed format, which is Form 61A.
The registrar will have to report purchase and sale of all immovable property exceeding Rs. 30 lakh to the I-T authorities.
It further specified that professionals will be required to inform the tax department of receipt of cash payments exceeding Rs. 2 lakh for sale of any goods or services.
As regards bank deposits, banks will have to report cash deposits aggregating Rs. 10 lakh or more in a financial year in one or more accounts of a person.
The same threshold will apply for term deposits in banks, but would exclude renewal of term deposits. These norms will also cover deposits and withdrawals made in Post Office Accounts.
Banking companies or financial institutions will also have to report to the authorities’ payments made by a person aggregating to Rs. 1 lakh or more in cash or Rs. 10 lakh or more by another mode against bills in respect of one or more credit cards in a financial year.
The notification has also laid down the reporting norms for cash payment of Rs. 10 lakh or more in a financial year for purchase of bank drafts or pre-paid instrument issued by RBI.
Cash deposits or withdrawals aggregating to Rs. 50 lakh or more in a financial year in one or more current accounts of a person will have to be reported by the bank to the I-T authorities.
A company will be required to report receipt of Rs. 10 lakh or more from a person in a financial year for acquiring bonds, debentures, shares or mutual funds.