PM Modi brings norms for high value transactions to curb Black Money

For black money holders, the CBDT has notified norms under which cash receipts and high value transactions beyond a certain threshold will have to be reported to the Income Tax authorities with effect from April 1. PM Modi brings norms to curb Black Money.

Modi Government does not want to leave any loopholes for the black money holders. To grab all black money, various thresholds have been notified from time to time. After cracking down on unaccounted money stashed abroad by Indians, the government is now working to curb domestic flow of black money, by plugging gaps in regulations.

The highlights of the reporting to be done from 1^st April as per new norms are as follows:

• Cash receipts, purchase of shares, mutual funds, immovable property, term deposits, sale of foreign currency will have to be reported to the tax authorities in a prescribed format, which is Form 61A.
• Registrar will have to report purchase and sale of all immovable property exceeding Rs 30 lakh to I-T authorities.
• Professionals will be required to inform the tax department of receipt of cash payment exceeding Rs 2 lakh for sale of any goods or services.
• In regards to bank deposits, banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more accounts of a person.
• In regards to term deposits, banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more accounts of a person. However, it would exclude renewal of term deposits. These norms will also cover deposits and withdrawal made in Post Office Account.
• Banking companies or financial institutions will also have to report to the authorities payments made by a person aggregating to Rs 1 lakh or more in cash or Rs 10 lakh or more by another mode against bills in respect of one or more credit cards in a financial year.
• Reporting norms for cash payment of Rs 10 lakh or more in a financial year for purchase of bank drafts or pre-paid instrument issued by RBI.
• Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more current account of a person will have to be reported by the bank to the I-T authorities.
• A company will be required to report receipt of Rs 10 lakh or more from a person in a financial year for acquiring bonds, debentures, shares or mutual funds.
• The Form 61A, will have to be furnished to Director of Joint Director of Income Tax (Intelligence and Criminal Investigation) through online filing.

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