Banks, post offices told to report cash deposits over Rs 2.5 lakh

The government on Wednesday asked banks and post offices to report to the Income Tax Department all deposits above Rs 2.5 lakh in savings accounts, and those in excess of Rs 12.5 lakh in current accounts, made during the 50-day window for depositing demonetised high value notes.

The union Finance Ministry notified that banks, co-operative banks and post offices will have to report to the tax department any cash deposits exceeding Rs 50,000 in a single day or aggregating to more than Rs 2.5 lakh during the period from November 9 to December 30, 2016.

They will also have to report cash deposits during the period aggregating to Rs 12.5 lakh or more, in one or more current accounts of a person.

Banks and post offices now have to file a relevant statement of financial transaction on or before January 31, 2017, the notification said.

These entities were earlier required to report to the I-T department only when cash deposits in an account exceeded Rs 10 lakh in one year.

Prime Minister Narendra Modi had on 8 November announced demonetisation of Rs 1000 and Rs 500 notes, saying the move was needed to eliminate black money, counterfeit notes and terror financing.

--IANS

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