Cash Deposit Archives - Tax Heal

New Income tax Rules for of Cash Deposit and Withdrawal from Bank, Current Account, CC Account : Income tax (Fifteenth Amendment) Rules 2022.

CA Satbir Singh — Wed, 11 May 2022 03:39:42 +0000

Income tax (Fifteenth Amendment) Rules 2022.

MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF DIRECT TAXES)
NOTIFICATION
New Delhi, the 10th May, 2022

G.S.R. 346(E).––In exercise of the powers conferred by clause (vii) of sub-section (1), sub-section(6A) of
section 139A, and clause (ab) of Explanation to the said section read with section 295 of the Income-tax Act, 1961 (43
of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules,
1962, namely:-
1. Short title and commencement.–– (1) These rules may be called the Income–tax (Fifteenth Amendment) Rules,
2022.

Download Complete Notification Click here

Breaking News ! Service Charges on Cash Deposit in Bank from 1st October 2019

CA Satbir Singh — Sun, 08 Sep 2019 13:00:41 +0000

Breaking News ! Service Charges on Cash Deposit in Bank from 1st October 2019

Demonetization – Cash Deposit analysis by Income Tax Department

CA Satbir Singh — Wed, 17 May 2017 06:10:05 +0000

May, 2017
Operation Clean Money
Thematic Report #1
Taxpayer Segment Analysis
Income Tax Department

Objective

Provide an overview of share of cash deposits (during the period 9^thNov to 30^thDec 2016) for various taxpayer and business segments.

Methodology

1. Account level deposit information from banks and post offices was aggregated for the PAN.

2. The reported cash transactions of banks were removed to avoid double counting.

3. PAN holder was classified in broad taxpayer segment as under:

-Proprietor (Small)
+Individual filing return in ITR 4S/Sugam
-Proprietor
+Individual filing return in ITR 4
-Non-Corporate
+Non-Corporate having business income (ITR 5)
-Corporate
+Corporate having business income (ITR6)
-Salaried person
+Individual having salary income > 50% of Total Income
-Partner
+Individual filing return in ITR 3
-Other Individual/ HUF
+Individual/HUF not in above categories
-Non-Profit Organization
+Entity filing return in ITR7
-Government
+G(Government) or L (local authority) in PAN Database
-No return
+PAN with no return available

4. PAN holders doing business were classified on the basis of nature of business mentioned in the last available return.

Limitations

Analysis is based on only reported cash transactions (not all cash transactions).
Reported cash transactions include both old and new currency deposited during the period.
Account level information without valid PAN has been excluded from this analysis.
Analysis is based on return available in systems (some returns may not be captured or verified).
Taxpayer segment classification based on return data may not be accurate.
The analysis may change on receipt of additional information.
Reported cash transactions may contain wrong PAN or amounts which may be revised
If taxpayer is engaged in more than one nature of business, only the first business was considered for analysis.

Taxpayer Segment Analysis

This section contains breakup of reported cash deposits for various taxpayer segments. Table 1 provides percentage of ‘distribution of PANs and ‘total cash deposit’ across taxpayers segments. Further, the table provides average reported cash deposits per PAN for taxpayer segments.

Table 1:Taxpayer Segment Analysis

Tax Payer Segment	PANs	Cash Deposits	Average Deposit per PAN (in Rs lakh)
Business
Proprietor (ITR 4S)	14.7%	6.1%	4.9
Proprietor	26.6%	35.4%	15.9
Non-Corporate	4.1%	14.4%	42.3
Corporate	2.0%	22.6%	137.4
Non-Business
Salaried person	6.7%	2.4%	4.3
Partners	1.6%	1.3%	9.6
Other Individual/ HUF	7.8%	2.8%	4.3
Others
Non-Profit Organization	0.5%	1.8%	44.4
Government	0.1%	0.7%	161.5
No Return Filed	36.1%	12.5%	4.1
	100.0%	100.0%	11.9

Salient Features

Corporates which account for 2% of the reported PAN have a share of 22.6% in the reported cash transactions.
Proprietors (individual running business) have a share of 41.5% in the reported cash
Taxpayers doing business have a share of 78.4% in the reported cash transactions.
1% of the PAN holders in the reported cash transactions have not filed return.

Business Segment Analysis

This section contains breakup of reported cash deposits relating to business for various business segments (as mentioned in ITR by taxpayers). The following table provides percentage of ‘distribution of PANs and ‘total cash deposit’ across nature of business. Further, the table provides average cash deposits per PAN by nature of business.

Table 2: Business Segment Analysis

Nature of Business	PANs	Cash Deposits	Average Deposit per PAN (in Rs lakh)
Trading	53.4%	60.8%	22.5
Manufacturing Industry	8.6%	11.6%	26.6
Service Sector	13.1%	9.9%	15.0
Financial Service Sector	1.3%	6.2%	94.6
Contractors	7.2%	3.0%	8.1
Professionals	6.7%	2.5%	7.5
Commission Agents	3.9%	1.8%	9.1
Builders	1.2%	1.5%	24.6
Entertainment Industry	0.4%	0.3%	15.4
Others	3.9%	2.4%	12.4
Not available (Blank)	0.4%	0.1%	4.8
	100.0%	100.0%	19.8

Salient Features

Traders have the largest share (around 61%)in the reported cash transactions relating to business.
Manufacturers have a share of 12% in the reported cash transactions relating to business.

Cash Deposit & Cash Withdrawal -Operational guidelines of Govt of India w.e.f 09.11.2016

CA Satbir Singh — Wed, 09 Nov 2016 04:42:46 +0000

Limit on Cash Deposit & Cash Withdrawal in India

With a view to curb financing of terrorism through the proceeds of Fake Indian Currency Notes (FICN) and use of such funds for subversive activities such as espionage, smuggling of arms, drugs and other contrabands into India, and for eliminating Black Money which casts a long shadow of parallel economy on our real economy, it has been decided by Govt of India to cancel the legal tender character of the High Denomination bank notes of Rs.500 and Rs.1000 denominations issued by RBI till now. This will take effect from the expiry of the 8^th November, 2016.

In order to implement the above decisions of the Government and keeping in view the need to minimise inconvenience to the public, the following operational guidelines have been issued:-

(i) Old High Denomination Bank Notes may be deposited by individuals/persons into their bank accounts and/or exchanged in bank branches or Issue Offices of RBI till the close of business hours on 30^th December, 2016.

(ii) Old High Denomination Bank Notes of aggregate value of Rs.4,000/- only or below held by a person can be exchanged by him/her at any bank branch or Issue Office of Reserve Bank of India for any denomination of bank notes having legal tender character, provided a Requisition Slip as per format to be specified by RBI is presented with proof of identity and along with the Old High Denomination Bank Notes. Similar facilities will also be made available in Post Offices.

(iii) The limit of Rs.4,000/- for exchanging Old High Denomination Bank Notes at bank branches or at issue offices of Reserve Bank of India will be reviewed after 15 days and appropriate notification issued, as may be necessary.

(iv) There will not be any limit on the quantity or value of Old High Denomination Bank Notes to be credited to the account of the tenderer maintained with the bank, where the Old High Denomination Bank Notes are tendered. However, in accounts where compliance with extant Know Your Customer (KYC) norms is not complete, a maximum value of Rs.50,000/- of Old High Denomination Bank Notes can be deposited.

(v) The equivalent value of the Old High Denomination Bank Notes tendered can be credited to an account maintained by the tenderer at any bank in accordance with standard banking procedure and on production of valid proof of Identity.

(vi) The equivalent value of the Old High Denomination Bank Notes tendered can be credited to a third party account, provided specific authorisation therefor accorded by the said account holder is presented to the bank, following standard banking procedure and on production of valid proof of Identity of the person actually tendering.

(vii) Cash withdrawal from a bank account, over the counter will be restricted to Rs.10,000/- subject to an overall limit of Rs. 20,000/- in a week for the first fortnight, i.e., until the end of business hours on November 24, 2016.

(viii) There will be no restriction on the use of any non-cash method of operating the account which will include cheques, demand drafts, credit/debit cards, mobile wallets and electronic fund transfer mechanisms.

(ix) Withdrawal from ATMs would be restricted to Rs.2,000 per day per card up to November 18, 2016. The limit will be raised to Rs.4,000 per day per card from November 19, 2016 onwards.

(x) For those who are unable to exchange their Old High Denomination Bank Notes or deposit the same in their bank accounts on or before December 30, 2016, an opportunity will be given to them to do so at specified offices of the RBI on later dates along with necessary documentation as may be specified by the Reserve Bank of India.

(xi) Instruction is also being issued for closure of banks and Government Treasuries, on 9^thNovember, 2016.

(xii) In addition, all ATMs, Cash Deposit Machines, Cash Recyclers and any other machine used for receipt and payment of cash will remain shut on 9^th and 10^th November, 2016.

(xiii) The bank branches and Government Treasuries will function from 10^th November, 2016.

(xiv) To avoid inconvenience to the public for the first 72 Hours, Old High Denomination Bank Notes will continue to be accepted at Government Hospitals and pharmacies in these hospitals/Railway ticketing counters/ticket counters of Government/Public Sector Undertaking buses and airline ticketing counters at airports; for purchases at consumer co-operative societies, at milk booths, at crematoria/burial grounds, at petrol/diesel/gas stations of Public Sector Oil Marketing Companies and for arriving and departing passengers at international airports and for foreign tourists to exchange foreign currency at airports up to a specified amount.

The relevant Notifications are available in the website of Finance Ministry (http://finmin.nic.in/). Further details including Frequently Asked Questions (FAQs) are available on the website of the Reserve Bank of India (https://www.rbi.org.in/).

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