Income Tax return efiling: ‘Help eradicate Black Money, join the Clean Money drive…Make correct disclosures and file your return on or before 31st July 2017’ – this was the Income Tax Department’s recent campaign on its website, which urged taxpayers to disclose the information of cash deposited in bank accounts from 09.10.2016 to 30.12.2016. As per the campaign, taxpayers are required to disclose details of cash deposited in bank accounts aggregating to Rs 2 lakh and more in the income tax return (ITR). As the deadline for tax filing has been extented, you can disclose the amount till today, ie, August 5.
“The information will be matched with the information in the possession of the Income Tax Department. Ensure that the ITR is compliant with the amount deposited in bank accounts during the period of demonetisation and while computing income, the amounts so deposited are considered/taken into account while paying taxes. Cash deposits made in the above period may thus be fully and truly disclosed in the ITR. It is also important to pay your self-assessment tax before filing your return,” it says.
According to tax experts, while filing their returns, assessees are required to provide the details of all the savings and current accounts held by them at any time during the previous year. However, it is not mandatory to provide details of dormant accounts which are not operational for more than 3 years. It is important to indicate the account in which assessee would like to get his refund credited irrespective of whether he has the refund or not. The account number should be as per Core Banking Solution (CBS) system of the bank.
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“The amount of cash deposited during 9 November 2016 to 30 December 2016 in the said bank accounts should also be filled. In case cash is deposited during 9 November 2016 to 30 December 2016 in any account other than the current and savings account (viz. loan accounts etc.), the details of such account indicating the cash deposited in the said account during the said period should also be provided. It may be noted that details of cash deposited are to be provided, if the aggregate amount of cash deposited during 9 November 2016 to 30 December 2016 is Rs 2 lakh or more,” says Chetan Chandak, Head of Tax Research, H&R Block India.
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It is to be noted, however, that only reporting the cash deposited in bank accounts is not enough. For calculating the aggregated deposits, any cash deposited in any account including loan accounts needs to be taken into consideration. Moreover, individuals who have sold immovable property have to mention PAN of the buyer of the property.