The Income-Tax Department is closely monitoring high-value cash deposits in bank accounts and has introduced a new reporting norm for high value transactions in the 52-day window (November 9 to December 30) to change and deposit old currency notes.

All persons depositing more than ?2.5 lakh of cash in their bank accounts between the period will be expected to provide their permanent account numbers (PAN), said the Central Board of Direct Taxes (CBDT).

Under existing norms, persons depositing cash over ?50,000 in their accounts were expected to provide the PAN, but there was no such cumulative limit.

Similarly, the CBDT has also asked banks and post offices to report as part of the Annual Information Returns (AIRs) all cash deposits of over ?12.5 lakh in one more current account of a person or ?2.5 lakh in any other account during the period.

At present, banks are expected to report cash deposits of over ?10 lakh in a year in the AIR.

The amendments by the CBDT to the AIR norms comes days after the government withdrew ?500 and ?1,000 rupee notes and introduced fresh ?500 and ?2,000 currency notes.

The Finance Ministry had given a 52-day window between November 9 and December 30 to deposit and covert their old denomination notes in their bank accounts. However, it had warned that strict action would be taken against those trying to use the facility to convert their black money into white.

The CBDT had also said if cash of over ?10 lakh is deposited in a bank account and does not match with the declared income, it would be treated as tax evasion and the persons may have to pay a 30 per cent tax and a 200 per cent penalty on such funds.

“Cash hoarders could have misused the erstwhile provisions by depositing an amount less than ?50,000 on various occasions without quoting their PAN and not worrying about a scrutiny. The CBDT has brought two-fold amendment casting a reporting responsibility on the taxpayer and the bank,” said Rakesh Nangia, Managing Partner, Nangia & Co.

To catch tax evaders who may try to siphon off their unaccounted wealth, authorities have also ought details of sales and turnovers from jewellers in this 52-day period.