New Delhi: Banks will have to notify the income tax department about “large cash deposits” of the Rs 2,000 notes, which have been withdrawn by the Reserve Bank of India (RBI), if they are above a threshold of Rs 10 lakh for term and savings deposits and Rs 50 lakh for current account deposits. The reporting system has been in place for years and is not a new provision taken in the wake of the move to recall the Rs 2,000 notes, an anonymous source told Livemint. The tax officials will comb through the data submitted by the banks to “detect tax evasion”, the report said. So, that question will be asked,” another source told the newspaper. According to Mint, this has been a “measure of caution” that banks have taken for people “who make repeated attempts to exchange” Rs 2,000 notes.

Source: Mint May 26, 2023 12:21 UTC