Cash deposit transaction in bank

Question BankCategory: Income TaxCash deposit transaction in bank
AvatarKollipara sundaraiah asked 5 months ago

Sir,
A I.t. return non filed person cash received from  different clients after amounts cash deposit in person bank  savings account .but a person this amounts used of clients amounts gst tax ,income tax and other taxes paid through on bank online payments.download 26as mentioned details below in f.y.19-20.
SFT code:004 cash deposit in bank account
Name of the SFT filer:sbi
Amount deposit:15 lacs.
Question:
A person above mentioned cash deposit in bank transactions I.t. return filed compulsory in f.y.19-20

1 Answers
AvatarAditya answered 4 months ago

Finance Act, 2019 has inserted a new seventh proviso to section 139(1) to provide for mandatory filing of return of income for certain class of person who carries out certain high-value transactions even though the person is otherwise not required to file a return of income due to the fact that Gross total income is below the basic exemption limit.
This information is required to be given when the taxpayer is filing ITR-1 under Seventh proviso to section 139(1) only and otherwise not required to furnish return of income.
If the answer to the above query is in affirmative, then exclusive reporting is required for the followings-
(i) If amounts of deposit exceed Rs. 1 Crore in one or more current accounts, then report the actual amount of deposit.
(ii) If expenditure on travel to a foreign country for self or for any other person exceeds Rs. 2 Lakh, then report the actual amount of deposit.
(iii) If incurred more than Rs. 1 lakh on electricity consumption, then report the actual amount of deposit.
CBDT is empowered to prescribe other conditions or high-value transactions under this seventh proviso.
As per  Section 285BA of the Income Tax Act, 1961, specified entities (Filers) are required to furnish an Annual Information Return (AIR) in respect of specified financial transactions registered/recorded by them during the financial year  to the income tax authority. 
Following transactions are reported under section 285BA;-
 
 
 

Sl. No.
 
(11)

Class of person (2)
Nature and value of transaction (3)

1
A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act).
Cash deposits aggregating to ten lakh rupees or more in a year in any savings account of a person maintained in that bank.

2
A banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act) or any other company or institution issuing credit card.
Payments made by any person against bills raised in respect of a credit card issued to that person, aggregating to two lakh rupees or more in the year.

3
A trustee of a Mutual Fund or such other person managing the affairs of the Mutual Fund as may be duly authorised by the trustee in this behalf.
Receipt from any person of an amount of two lakh rupees or more for acquiring units of that Fund.

4
A company or institution issuing bonds or debentures.
Receipt from any person of an amount of five lakh rupees or more for acquiring bonds or debentures issued by the company or institution.

5
A company issuing shares through a public or rights issue.
Receipt from any person of an amount of one lakh rupees or more for acquiring shares issued by the company.

6
Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908.
Purchase or sale by any person of immovable property valued at thirty lakh rupees or more.

7
A person being an officer of the Reserve Bank of India, constituted under section 3 of the Reserve Bank of India Act, 1934, who is duly authorized by the Reserve Bank of India in this behalf.
Receipt from any person of an amount or amounts aggregating to five lakh rupees or more in a year for bonds issued by the Reserve Bank of India.

 
 
Cash deposit in your saving bank account was above Rs. 10 Lakh Hence it was reported in AIR. But this is not covered in specified transaction mentioned under 7th proviso of 139(1) but still it is recommended to file your ITR even if your income is below Basic exemption limit. 

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