We have seen a Important notice of social media as under.This Notice has gone viral on social media ,so we have decided to check correctness of the same.
Whether the above message is true or False,lets Check
Lets check the correctness of First point
To verify the correctness of the above message we have login to Income tax efiling site and found that a new window under the compliance TAB with heading "Accounts with cash transaction" has been added as shown in the Picture below.To this extent the news is correct.
So,first point is correct partially correct that Income tax department has added a new feature on income tax website with heading accounts with cash transaction as shown above.
But after inquiry from Income tax helpline we have come to know that this feature has been added since last 2 month ie in September,2016 itself .So the point raised in above message that this feature has been added today is incorrect totally.
Lets check the correctness of second & Third point
Second & third points is basically that
- Income tax department server has been linked with Income tax department and
- data shown in new compliance window is updated in real time and
- Data will be updated by entry by entry and
- there is no minimum cash deposited limit for this new feature.
But my dear friend the above point is totally false and incorrect and BU^L SH^^T.
As per rule Banks are regulated and controlled by RBI.To collect any Information from bank , Income tax department have to issue a notification under which an information can be sought.At present No such notification has been issued regarding updatation of income tax data with banks in real time till date.
However banks are required to submit report under Annual Information Report (AIR) for cash deposited up to limit shown as under.
Further Banks are also required to report CTR=cash transaction report STR=Suspicious Transaction Report as per norms issued by RBI from time to time.
Moreover Income Tax department has also specified that this TAB is for Bank/Financial Account(s) with substantial Cash Transactions .Means only that accounts will be shown in this report in which substantial cash transaction of deposit has been made.And as described above substantial cash transaction here means 10 lakh for saving bank and 50 lakh for current account.
So on the basis of above details it can be concluded that Statement given in above notice is incorrect that Income Tax Data and Bank Data is integrated in Real Time .The Fact is that Income tax department has only access of information of cash deposited for the accounts only in which substantial cash deposit has been made during a particular financial year.
Accordingly above TAB will be updated after completion of Financial year only.And information shall be taken Financial year wise/PAN wise.
Lets check the correctness of Forth point
The Last point says that in light of point number 1-3 , person should avoid cash deposit in their accounts.But this conclusion is also not valid as the Point No 1 to 3 are incorrect so conclusion drawn on the basis of above is also incorrect.
Then point arises here that why the new TAB has been created ?
Actually this tab has been created to submit a formal reply to income tax department at a click of button , where notice has been issued to account holder regarding cash deposit in saving account /current account above the limit specified as above.
Further the answer to above notice is also required to be submitted account wise from drop down menu only Under this menu first account details of account tagged with a particular PAN is mapped/shown in first window.
Then person have to select a appropriate answer from drop down menu.
Then add any remarks if required regarding that transaction /account.That answer will be updated to assessing officer and on the basis of above information and other information with him ITO will decide further.
The whole process is described as under.
Bank/Financial Account(s) with substantial Cash Transactions
As part of its data matching exercise, Income Tax Department has identified bank accounts which have large value cash transactions. The details of bank account are visible under “Compliance” section of the e-filing portal of the related persons. The PAN holders are requested to submit the on-line response as under:
Step 1: Login to e-filing portal at https://incometaxindiaefiling.gov.in. If you are not registered with the e-filing portal, use the ‘Register Yourself’ link to register.
Step 2: Click on “Accounts with Cash Transactions” link under “Quick link” or “Compliance” section and you will be directed to the “Bank/Financial Account(s) with substantial Cash Transactions” page.
Step 3: View the details of the bank account related to you
Step 4: Submit online response and keep acknowledgement for record. I
In drop down menu following options will be shown
In drop down menu following options will be shown
- Transactions in the accounts are considered in IT return
- Transaction in the account are considered in IT return of another account holder(for this you have to update pan of other account holder in remarks column)
- Transaction in account are not considered in IT return
- Transaction in the account are not taxable or exempted (eg agriculture income)
- No relation with the account
In case you make a mistake in submission of response, you may further revise it by login to e-filing portal.
So no need to worry ,Do not take steps in panic or haste, the above notice shared on social media is incorrect/false/misinformation and you should not bother about it at all.
You can deposit old notes in your bank account without any limit. However you should keep in mind the cash in hand with you in books of accounts or otherwise. Further keep a close watch on statement/circulars/notification released by authorities from time to time.
We have already updated you that govt has assured that No question asked for small deposit of cash in bank account by small businessmen, housewives , artisans ,workers up to 1.5 to 2 lacs.
So no need to worry ,Do not take steps in panic or haste, the above notice shared on social media is incorrect/false/misinformation and you should not bother about it at all.
You can deposit old notes in your bank account without any limit. However you should keep in mind the cash in hand with you in books of accounts or otherwise. Further keep a close watch on statement/circulars/notification released by authorities from time to time.
We have already updated you that govt has assured that No question asked for small deposit of cash in bank account by small businessmen, housewives , artisans ,workers up to 1.5 to 2 lacs.
Source: Rajkumari: Simple Tax India
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