Govt clarifies furnishing statement of financial transactions

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New Delhi, December 23
The Central Board of Direct Taxes has clarified that any person who is liable for audit under section 44AB of the Income-Tax Act, 1961 is required to furnish a statement in respect of transaction at serial no.-11 of Rule 114E(2) relating to receipt of cash payment exceeding Rs 2-lakh for sale of goods or service. The clarification has come in the light of doubts being raised if such transactions are required to be aggregated for reporting. According to the Finance Ministry, the norms of aggregation contained in sub-rule 3 of Rule 114E have been amended vide CBDT’s Notification No. 91/2016 dated October 6, 2016; clearly indicating that the said transactions did not require aggregation and the reporting requirement under SFT for this purpose is on receipt of cash payment exceeding Rs two-lakh. for sale of goods or services per transaction.
In order to track the unaccounted money making its way into bank and post office accounts post demonetisation, the CBDT had amended certain income tax rules.
Under Rule 114E of the Income Tax Rules, 1962, specified persons under section 285BA of the Income-tax Act, 1961, have to report high-value financial transactions. This has been modified.

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