Reporting Cash Transactions under Rule 114E of Income Tax Rules, 1962
Rule 114E of Income-Tax Rules, 1962, for furnishing Statement of
Financial Transactions (SFT) came into force with effect from 1st April,
2016. Any person who is liable for audit under section 44AB of the
Income-Tax Act, 1961 is required to furnish a statement in respect of
transaction at serial no. 11 of Rule 114E(2) relating to receipt of cash
payment exceeding Rupees 2,00,000/- (Rupees Two Lakh) for sale of goods
or service. Doubts were raised if such transactions are required to be
aggregated for reporting.
The norms of aggregation contained in sub-rule 3 of Rule 114E have been
amended vide CBDT’s Notification No. 91/2016 dated 6th October, 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.
PIB
