Latest obligations in case of cash transactions exceeding Rs 2 lacs

TCS u/s 206C of the Income Tax Act, 1961 with effect from 01-06-2016

The seller shall collect the tax at the rate of one per cent from the purchaser on sale in cash of any goods (other than bullion and jewellery), or providing of any services (other than payments on which tax is deducted at source under Chapter XVII-B) exceeding two lakh rupees. These provisions shall not apply to certain class of buyers who fulfil such conditions as may be prescribed.

 

Annual Information Return u/s 285BA of the I.T. Act, 1961 read with rule 114E of the Income Tax Rules, 1961 with effect from 01-04-2016. Any person who is liable for audit u/s 44AB of the Income Tax Act, 1961 is required to file AIR if he is in receipt of cash payment exceeding two lakh rupees for sale or services of any goods within filed within sixty days from the close of relevant financial year.

 

Mandatory Quoting of PAN with effect from 01-01-2016

As per CBDT Notification S.O. No. 3545(E) dated 30th December, 2015 with effect from 1st January, 2016 making amendment in Rule 114B of the Income Tax Rules, 1962, the quoting of PAN, inter-alia, has been made mandatory in respect of sale or purchase of goods or services of any amount of more than Rs. 2,00,000 per transaction.