The spree of statements that creates panic among the people continues from Central Board of Direct Taxes. In a latest directive, CBDT has instructed all the banks to submit details of transactions of various nature in the bank accounts of their customers. The CBDT has asked for the details with various transaction limits. Here are the details of more restrictions:
1) Cash deposits in accounts of a person aggregating to Rs 10 lakh in a financial year have to be submitted to CBDT.
2) Credit card payments worth more than 1 lakh in cast and Rs 10 lakh in a financial year should be reported.
3) Cash deposits during April 1, 2016 - November 9, 2016 should also be intimated to the tax authorities by January 31, 2017, as per the notification of CBDT.
4) It is mandatory for a bank including cooperative bank to report cash deposits aggregating to Rs 10 lakh or more in a financial year. This excludes current accounts and time deposits.
5) Issuance of bonds and debentures by companies and purchase of shares and mutual funds worth more than Rs 10 lakh have to be reported to CBDT.
6) Purchase or sale of any immovable property for an amount of Rs 30 lakh or more and cash payments exceeding Rs 2 lakh for sale of goods or services should be submitted to CBDT.
7) Time deposits, excluding deposits made through renewal of another time deposit of worth aggregating Rs 10 lakh or more in a financial year have to be reported to CBDT.
8) Cash deposits or withdrawals (including via bearer’s cheque) aggregating Rs 50 lakh or more in a financial year in an account should be reported to CBDT for scrutiny.
These restrictions and guidelines are certainly going to create panic among the account holders. The restrictions are likely to create negative impact on banking and property sectors.