The rush to deposit cash in bank accounts has resulted in the tax department working towards reining in any black money that may be deposited. Cash deposits in banks and post offices above certain limits between November 9 and December 30, 2016, will be reported to the income tax department.
As per Section 285BA of the Income Tax Act, 1961 (as substituted by Finance Act, 2014 w.e.f 01-04-2015), specified entities (filers) are required to furnish a statement of financial transaction or reportable account (statement) in respect of specified financial transactions or any reportable account registered or recorded or maintained by them during the financial year to the income-tax authority or such other prescribed authority. The list of high value transactions is mentioned in rule 114E of the act.
With change in rules each passing day, there has been an addition to the rule 114E list, which was amended with effect from November 15 to the effect that 'cash deposits during the period November 9, to December 30, 2016, aggregating to Rs 2.5 lakh or more, in one or more accounts (other than a current account) of a person, shall be reported by a bank and post office.