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April 17, 2025
Mandatory Reporting of Cash Transactions Above ₹2 Lakh by Courts and Sub-Registrars
The Central Board of Direct Taxes (CBDT) issued a directive requiring all self-reporting organizations (SROs), including courts and sub-registrar offices (SROs), to report any cash transactions exceeding ₹2 lakh to the Income Tax Department. This measure aims to enhance financial transparency and curb black money.
Key Provisions
- Mandatory Reporting of High-Value Cash Transactions:
- SROs must report cash transactions exceeding ₹2 lakh to the Income Tax Department.
- This includes cash payments for the purchase or sale of immovable property, which must be reported via Form 61A under Section 285BA of the Income Tax Act.
- Deadline for Compliance:
- The deadline for submitting these reports is June 30, 2025.
- Failure to comply may result in penalties and legal consequences.
- Penalties for Non-Compliance:
- Under Section 271DA of the Income Tax Act, a penalty equal to the amount of cash received in contravention of Section 269ST may be imposed.
- Section 271E imposes a similar penalty for cash repayments exceeding the prescribed limits.
Implications for Stakeholders
- Courts and SROs: Must implement systems to identify and report qualifying cash transactions.
- Legal Professionals and Real Estate Agents: Should advise clients on the importance of adhering to these reporting requirements to avoid penalties.
- General Public: Individuals involved in high-value cash transactions should be aware of these regulations and ensure compliance.
Conclusion
The CBDT’s directive underscores the government’s commitment to promoting transparency and combating financial malpractices. All concerned parties must ensure timely and accurate reporting of high-value cash transactions to the Income Tax Department.
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