More Transactions To Come Under IT Scrutiny

By BankBazaar | January 23, 2017

More Transactions To Come Under IT Scrutiny

The demonetisation deadline might have come to an end, but the ripple effects of the drive haven’t ceased. A little way into the New Year, the Government is as aggressive about unearthing black money and cracking down on corruption as it was on the 8th November 2016 when the demonetisation exercise kicked off. So, if you think that things have cooled off, then think again. The drive is still on.

To this effect, the IT Department on 17th January 2017 asked banks, financial institutions and post offices to give it details of major financial transactions that happened between 1st April and 9th November 2016. Talking about efficiency, the IT Department has provided banks and financial institutions with an e-platform where transactions details can be uploaded.

Additional Link: How To Handle An Income Tax Notice

Following are the transactions that will be scrutinised:

  1. 10 lakhs in one or many accounts? Yes, this number is not on per account. It’s Rs. 10 lakhs in all your accounts.
  2. FYI, the IT department is already looking at cash deposits of over Rs. 2.5 lakhs made between November and December 2016. For current deposit accounts the threshold is 12.5 lakhs.
  3. Banks and financial institutions have to report cash deposits made between 1st April and 9th November 2016 by 31st January 2017.
  4. Oh, your money is in a Fixed Deposit account. Why do you need to worry, right? Well, the IT Department asked for reports on all Fixed Deposits in a financial year of Rs. 10 lakhs or more, per person. If your money is accounted for, then there is nothing to worry about.
  5. Is your Credit Card your best friend? Well, your Credit Card payments of Rs. 1 lakh or more made in cash will be reported too. What if you’ve always made your Credit Card payment using online transfer or via cheque? Banks and financial institutions have also been asked to report Credit Card payments made via cheque or wire transfer on all your Cards aggregating to Rs. 10 lakhs or more.
  6. Not just the banks, the IT Department has also included companies and Institution in its crackdown. If a person has invested Rs. 10 lakhs or more in bonds and debentures then it needs to be reported to the IT Department. The same criteria extends to investments made in Mutual Funds or money spent to buy back shares.
  7. 10 lakhs or more is the number again. It’s like a recurring theme or rather a ‘nightmare’ for some. If this amount has been spent on foreign exchange (for example travellers’ cheques or forex cards), it will have to be reported as well.
  1. Real Estate is under the purview as well. Property registrars have to report all sale and purchase of property made for Rs. 30 lakhs or more.

Along with these checks, banks have been given time till 28th February 2017 to collect PAN (Permanent Account Number) details from all account holders who did not submit their PAN at the time of account opening. Those without a PAN need to submit Form 60.

Additional Reading: How To Apply For A PAN Card Online

If you are an honest taxpayer, you don’t have to worry about any of the above. You can sleep comfortably on your spring mattress. But if the springs are giving way under pressure of your weight and thick wads of cash, well, then, you’ve learnt your lesson – pay your taxes on time!

We understand that cash-crunch stemming from demonetisation may have placed some of you in a tight spot financially. Don’t worry, we’ve got some great Credit Card offers to help you sail through these difficult times.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit for the latest rates/offers.
Category: Tax

About BankBazaar

BankBazaar is the world's first neutral online marketplace for instant customised rate quotes on Loans, Credit Cards, Insurance and Investment products. Shop for financial products just like you buy everything else now - online.

Leave a Reply

Your email address will not be published.