Reporting of cash deposit-withdrawals to the Income Tax Department

Reporting of cash deposit-withdrawals to the Income Tax Department

Following Transactions along with your PAN and/or Aadhar will be reported by Banks /Post Office Bank to Income tax Department vide Notification No. 53/2022 dated 10/05/2022

1. Cash Deposits: Cash deposits of ₹20 lakh or more in a financial year in one or more accounts, with:
   • Banks (subject to the Banking Regulation Act, 1949) or
   • Post Offices.

1. Cash Withdrawals: Cash withdrawals of ₹20 lakh or more in a financial year in one or more accounts, with:
   • Banks or
   • Post Offices.

1. Opening a Current or Cash Credit Account: Opening a current or cash credit account with a bank or Post Office.

The above rule does not apply in the following cases:

1. If the person involved in the transaction is a non-resident (other than a company) or a foreign company, and:
   • The transaction is made otherwise than by way of cash .
   • The current account is not a cash credit account.
2. If the transaction is made with an IFSC (International Financial Services Centre) banking unit.
3. The non-resident or foreign company does not have any income chargeable to tax in India.

Kindly note limit of Rs. 20 Lakhs is to be counted in a financial year considering cumulative transactions. 

Notification No. 53/2022 dated 10/05/2022