Everybody is discussing about how much to be deposited into bank account. We have tried to explain with the help of Income tax Rule 114B Notification dated 15th November 2016 which is explained below:
Quoting PAN no. is compulsory :
If cash deposited in bank or post account in a single day exceeding Rs. 50,000 or more from 9th November to 30th December and the total cash deposited in bank or post account exceeds Rs. 250,000/-, then PAN number of the depositor is required to be quoted on deposit slip. For e.g. if a person deposits Rs.50,000/- six times in bank account totaling Rs.3 lakh from 9th November to 30th December, then he will have to quote his PAN number compulsorily. For depositing 49,000/- once and in total up to 30th Dec is not required to quote PAN. This includes all deposits from 9th Nov, i.e, of OLD and as well as of NEW notes, please take care of this.
Each bank and post office will have to report the details of following transactions from 9th November to 30th December to income tax department:
1. Cash deposited in current account exceeding Rs.12.5 lakhs.
2. Cash deposited in other than current account i.e. Saving A/c, Loan, FD, RD, etc. exceeding Rs.2.5 lakhs.
For e.g. If a person deposits Rs.13 lakhs in current account either in installments or in single stroke, then bank will have to report it to the income tax department. Many businessmen are worried as, they carry on regular business after 9th Nov with New Notes and deposit it with Bank, and then also it will be counted in limit of 12.5 lakhs, as deposits of all OLD and NEW notes both will be considered for calculating the limit.