New IT-rules on transaction of money to apply from April 1, 2016

With the view to curb Black Money, Central Board Direct Taxes has notified a new rule mandating to give the information of transactions above a specific amount to the income tax from April 1, 2016.

As per the new criteria, information about cash receipts, purchasing of shares, mutual fund, real estate, fixed deposit, sale of foreign exchange would be given to the department as per the format, which is Form 61A.  The registrar needs to submit all the information about the sale and purchase of all immovable property exceeding Rs. 30 lakhs worth to the income tax department.

The professionals will be required to inform the tax department of receipt of cash payment exceeding Rs 2 lakh for sale of any goods or services.

The same limit will apply to fixed deposits in banks but would exclude the renewal of the term deposit. These criteria will also cover post office deposits and withdrawals.