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Cash deposits reporting by bank

CA rahul (BCOM(H) ACA) (725 Points)

13 April 2016

Dear Member

Refering to the CBDT circular regarding Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more current account of a person will have to be reported by the bank to Director of Joint Director of Income Tax (Intelligence and Criminal Investigation) through online filing in FORM 61A with effect from April 1..
MY query is -In case if the person hold two current account with different bank then limit of Rs 50 lakh would apply separately for each bank account

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4 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 13 April 2016

under a singal PAN, department may trace all transactions, even without Anual Reporting

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CA rahul (BCOM(H) ACA) (725 Points)
Replied 13 April 2016

thanks for your advice ,in case cash deposit under two bank account does not exceed 50 lakh then in case bank may report a nil statement , then also department will be in position to trace the transcation

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 13 April 2016

AIR does not means any step by department, its just statics collection, they verify the returns and it returns are worth that transaction limit they dont take any step.

However there are remarkable number of PAN holders who does not file returns but transact in cash with banks with big amounts , AIR helps department to find out those persons just