New Delhi: People depositing Rs 50,000 in cash in a day are also now under the scanner of government.
The RBI on Wednesday asked banks to ensure PAN is obtained from all people depositing over Rs 50,000. As per a separate notification issued by the Centre, banks, co-operative banks and post offices will have to report to the tax department cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh between November 9 and December 30. “Anybody depositing more than Rs 50,000 in cash has to submit a copy of the PAN card in case the bank account is not seeded with PAN,” it said.
50-day window can be misused
Income-Tax department officers believe that the 50-day window provided to people to deposit or exchange notes should not be misused and hence the need to keep a tab on such high-value deposits.
Banks will also have to report cash deposits during the period aggregating to Rs 12.50 lakh or more, in one or more current account of a person.
The finance ministry has notified the amended rule for filing of Annual Information Return (AIR) report by the banking company, cooperative bank and post offices on account of aggregate cash deposits in one or more current account of a person.
Banks and post offices now have to file a statement of financial transaction in respect of these transactions on or before January 31, 2017, the notification said.
Earlier, they were required to report to the I-T department only when cash deposits in an account exceeded Rs 10 lakh in one full year. In view of apprehensions that large number of illegal or black money may sought to be converted into white during the window provided till December 30, the revenue department has issued fresh set of instructions.
