Biz receiving more than Rs 2 lk in single transaction for sale will have to send report: IT dept

New Delhi, Dec 24 (KNN) Central Board of Direct Tax (CBDT) on Friday, notified that any business receiving more than rupees 2 lakhs in any single transaction for the sale of goods and services will have to send reports to the authorities.

The clarification on the reporting guidelines came into action from April, 2016, amid doubts about reporting of cash transactions that aggregate to rupees 2 lakh.

“There should be some more provisions, as there are big traders like Real Estates trader who has to deal in crores, otherwise it is a good move,” said Manika Premsingh, Economist & Founder, Orbis while talking with the KNN.

According to the CBDT in a statement released, the norms of aggregation contained in sub-rule 3 of Rule 114 E have been amended vide CBDT notification dated October 6, 2016, clearly indicating that the said transactions did not require aggregation and the reporting requirement under SFT for this purpose is on receipt of cash payment exceeding rupees two lakh for sale of goods or services per transaction. (KNN/RAS)