You are in deep trouble if you deposit cash over Rs 2.5 lakhs
New Delhi: Whatever cash you are depositing in the banks or post offices is being closely monitored by the Income Tax authorities. In line with this PAN norms have been modified and a new reporting system has been introduced for reporting high value cash deposits in the banks and post offices for the period November 9 to December 30.
All those who have deposited more than Rs 2.5 lakhs in the period are now required their submit their PAN. Till now there was no cumulative limit, and those depositing above Rs 50,000 were required to furnish PAN. Taking advantage of this many people were depositing less than Rs 50,000 a number of times.
The bank and post offices have been asked to send details of all current accounts in which cash deposits of over Rs 12.5 lakhs have been made, and all other accounts in which cash over Rs 2.5 lakh has been deposited. At present, banks are expected to report cash deposits of over ₹10 lakh in a year in the Annual Information Return. News24Bureau