Tax Troubles? We've Got You Covered!
Tax Advisory Services
Get Expert Consultation Now!
  • 2500 Cr. Saved Already!
  • Trusted by 1 Million+
  • 10+ Yr. of Industry Experience
Tax Advisor

BEWARE – Govt of India is Watching You

Updated on: 09 Aug, 2023 01:11 PM

08 November, 2011 the eve of demonetization in India marked its place in everyone's life.

Ever since the time of demonetization, reforms in financial policies have been talk of the country. The event has triggered human minds to be active in every monetary transaction they have made thereafter. But, for those who are mistaken that gone are the days of vigilance or for those who are afraid of making every transaction, here is the list of activities which are under surveillance of government through automatic reporting from concerned departments involved :-

Cash deposit

  • Rupees 10,00,000 (10 Lakh) or more cash deposited in one financial year in the name of one holder [saving account] will be reported to the Income Tax department. In the name of one account holder means a person depositing cash in all his bank accounts(other than current a/c and term deposit) with different accounts will be considered in aggregate and will not be seen individually.
  • Rupees 12,50,000 (12.5 Lakh) deposited in current account. The concerned bank will report to the Income tax department any transaction made by a person of the quantum specified during 9 November 2016 to 30th December 2016.
  • Rupees 2,50,000 (2.5 Lakh) or more deposited in all bank accounts (except current a/c) of a person between 9 November 2016 to 30th December 2016.
  • Cash deposited between 01st April 2016 to 9th Nov 2016 will be brought to the notice of income tax department if, it is covered under the provisions of transactions to be reported.

Cash payments

  • Rupees 1,00,000 (1 Lakh) or more in aggregate for paying bills of credit card during a financial year.
  • Rupees 10,00,000 (10 Lakh) or more in aggregate for purchasing bank drafts, pay orders, banker's Cheque or pre-paid instruments issued by RBI in a financial year.

Aggregate of Rupees 10,00,000 or more in a financial year spent by a person for the following purposes:-

  • Paying for one or more credit cards.
  • Mutual Fund – including all schemes invested in except amounts transferred from one scheme to another
  • Foreign currency – including all instruments like debit & credit cards, travelers Cheque etc.
  • Shares – including share application money
  • FD – excluding renewals
  • Bonds or Debentures – except renewals

Aggregate of Rupees 10,00,000 or more in a financial year received by a person for the following purposes:-

Buy back (except through open market)

Cash deposits or cash withdrawals aggregating to Fifty Lakh Rupees or more in a financial year, in or from one or more current account of a person is also reportable.

Purchase or sale by any person of immovable property for an amount of thirty Lakh rupees or more or valued at the said price by relevant authority is also reportable.

CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.