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Tax Implications on Bank Receipts

Educere Pathways (6 Points)

17 August 2022

Tax Implication on receipt of Rs. 100000 or more in Bank Account

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prasad Nilugal ( GST Practitioner & Accounts ) (14801 Points)
Replied 17 August 2022

What is the reason for receipt? ( source of income).

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 17 August 2022

Depends on nature of transaction

sabyasachi mukherjee (27574 Points)
Replied 20 August 2022

No tax implications can be mentioned unless the detailed information is furnished.

Sai Allu (754 Points)
Replied 20 August 2022

Here is a look at some of the high-value cash transactions that can get you a notice from the income tax department.

Cash deposit in FD: The Central Board of Direct Taxes (CBDT) has said that banks have to report if a person deposits in one or more time deposits (other than a time deposit made through renewal of another time deposit) an amount aggregating to Rs 10 lakh or more in a financial year.
Cash deposits in bank accounts: CBDT has made it mandatory for a bank or a cooperative bank to report cash deposits aggregating to Rs 10 lakh or more during a financial year, in one or more accounts (other than a current account and time deposit) of a person.
Credit card bill payments: Payments made of an amount aggregating to Rs 1 lakh or more in cash towards credit card dues will have to be reported, says CBDT. Further, if one pays Rs 10 lakh or more to settle credit card dues in a financial year (via any mode), these transactions will also have to be reported to the tax department.
Property transactions: Property registrar will have to report to tax authorities "purchase or sale by any person of immovable property for an amount of Rs 30 lakh or more."
Purchase of shares, mutual funds, debentures and bonds: Companies or institutions issuing bonds or debentures will have to mandatorily report receipt from any person an amount aggregating to Rs 10 lakh or more in a financial year for acquiring bonds or debentures. A similar limit is set for reporting purchase of shares and mutual funds.
Purchase of foreign exchange: Purchase of foreign exchange, which includes travellers cheque and forex cards, debit or credit cards, aggregating to Rs 10 lakh is reported to the tax department.