Demonetisation: Cash Deposits (during demonetisation) Regulatory and Reporting Rules for Banks and Post Offices
The Central Board of Direct Taxes vide notification No.104/2016 dated 15th November,2016 has amended Rule 114B (mandatory quoting of PAN) and Rule 114E (reporting in AIR) casting regulatory and reporting obligations on the banks and post offices for accepting and reporting of cash deposits in the bank accounts and post office accounts.
PAN Mandatory for cash deposits in bank and post offices exceeding Rs. 2,50,000 during the period 9th November 2016 to 30th December, 2016
Section 139A (5) (c) of Income-tax Act, 1961 requires that a person entering into transactions specified in Rule 114B has to quote his PAN.
Rule 114B specifies 17 types of transactions where PAN is to be quoted
Rule 114B has been amended and now PAN is mandatory for the following cash deposits in bank account and post office account :
(i) Cash deposits exceeding Rs. 50,000 during any one day (old).
(ii) Cash deposits exceeding Rs. 2,50,000 during the period 9th November 2016 to 30th December 2016 (new).
Now even a post office is also covered by this rule,
Reporting of Cash Deposits in banks and post offices during the period 9th November 2016 to 30th December, 2016
Section 285BA requires specified persons to furnish a Statement of specified financial transactions (AIR) listed in Rule 114E
The statement of specified financial transactions (AIR) for the financial year 2016- 17 is to be submitted in Form No.61A by 31st May, 2017 by all the banks and post offices.
Rule 114E has been amended and now the following additional financial transactions will also have reported by banks and post offices in statement of specified financial transactions (AIR).
Cash deposits in bank account or a post office account during the period 9th November,2016 to 30th December, 2016
(i) Cash deposits aggregating to 12,50,000 or more in one or more current account of a person or
(ii) Cash Deposits aggregating to 2,50,000 or more in one or more accounts (other than current account) of a person.
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