10 Money transactions mandatory to report – New Income Tax Rule

Do you know about new income tax rule applicable from April, 2016? As per recent notification by Central board of direct taxes (CBDT) it is mandatory to report 10 money transactions to Income tax department from FY 2016 onwards. The basic objective behind this new rule is to curb prevailing black money flow and to increase tax payer base.  So, here is 10 money transactions for which reporting is mandatory to Income tax from FY 2016 onwards.

10 Money transactions mandatory to report

1. Receipt from any person of an amount summing up to 10 lakh rupees or more in a financial year for acquiring shares or buy back of shares from any person for amount exceeding 10 lakh or more in a financial year. A Company issuing Share is responsible for reporting this transaction to IT department.
2.  Cash deposits summing up to 10 lakh rupees or more in a financial year, in one or more accounts. A banking company or co-operative bank is responsible for reporting this transaction to Income Tax.
3. Payments made in cash aggregating to ten lakh rupees or more during the financial year for purchase of pre-paid instruments issued by Reserve Bank of India or cash deposits or withdrawals aggregating to fifty lakh rupees or more in a financial year, in or from one or more current account of a person.  A banking company or co-operative bank is responsible for reporting this transaction to Income Tax.
4. Purchase or sale by any person of immovable property for an amount of thirty lakh rupees or more or valued by the stamp valuation authority. This transaction should be reported by Registrar or Sub-Registrar or Inspector general to Income tax department.
5. One or more fixed deposit made by person summing up to 10 lakh or more in the financial year. This transaction also needs to be reported to income tax department by a banking company or co-operative bank.
6. Payment through credit card purchase above 1 lakh or more in financial year or payment of 10 lakh or above by any other mode.A credit card company or bank is responsible for reporting this transaction to Income tax.
7. Receipt from any person amount exceeding 10 lakh or above in a financial year for purchasing one or more scheme of mutual funds. This transaction is to be reported by a trustee of Mutual Fund to IT department.
8. Receipt from any person amount exceeding 10 lakh or above in a financial year for purchasing bonds or debenture of company. A company or institution issuing bonds or debentures is responsible for reporting this transaction to IT department.
9. Receipt from any person for sale of foreign currency including any credit of such currency to foreign exchange card or expense in such currency through a debit or credit card or through issue of travellers cheque or draft or any other instrument of an amount exceeding 10 lakh or above in a financial year. Authorized person as per FEMA has to report this transaction to IT department.
10. Receipt of cash payment aggregating to 2 Lakh for sale, by any person, of goods or services of any nature. Any person who is liable for audit has to report this transaction to IT department.

So, now onwards all these transactions shall be reported and monitored by Income Tax rigorously. No person can escape from Income tax.
This new income tax rule will surely helps our country to prevent flow of black money. It will also help income tax to increase number of tax payers.