In pursuance of the “Clean Note Policy” of the Reserve Bank of India, it has been decided to withdraw the 2000 denomination banknotes from circulation.
However, to complete the exercise in a time-bound manner and to provide adequate time to the members of the public, all banks will provide deposit and/or exchange facility for 2000 banknotes until September 30, 2023.
As per the existing income tax provisions, for keeping a watch on the high-value transactions done by the taxpayers, the Income Tax Act has framed a concept to furnish a Statement of Financial Transactions (SFT).
As per SFT provisions, banks are required to report the following transactions :
– Deposits or withdrawals amounting to Rs 50 lakh or more from any number of current accounts of a person with the bank
– Deposit totalling Rs 10 lakh or more in bank accounts, other than current or time deposit accounts, of a person.
– Cash payment aggregating to INR 1 lakh or more in a year or Rs 10 lakh or more in any other mode of payment against any credit card bill which is issued to a customer in a year.