Reveal repaid loans over Rs 2 lakh: I-T

New Delhi: The income-tax department has also made it mandatory to declare cash deposits over Rs 2 lakh in loan accounts and credit cards among others made during demonetisation while filing income tax return from April 1.

Earlier, I-T department had said that cash deposits over Rs 2 lakh deposited in banks made during between November 9 and December 30, 2016 were to be mentioned in income tax return form for assessment year 2017-18.

However, instructions for filling I-T return form issued by the department says that cash deposited over Rs 2 lakh in  any account besides saving and current account made during demonetisation too has to be declared.

“In case cash is deposited during 09.11.2016 to 30.12.2016 in any account other than the current and savings account (viz. loan accounts etc.), then details of such account indicating the cash deposited in the said account during the said period should also be provided,” said the department.  

This will allow I-T department to seek explanation from people about whom it has information that they deposited unaccounted sums in banks after demonetisation.

It will help the department to investigate if the income profile matches with the cash payments made by the person. The limit has been kept at Rs 2 lakh so as not to harass small tax payers.  Tax payers also need 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 three years.  Tax payers will also need to quote their Aadhaar number while filing their returns as per the recently passed amendments in the Finance Bill by the Parliament.