Apr 23, 2021
Lenders to report taxpayers’ interest income above ?5k
The Central Board of Direct Taxes (CBDT) has issued detailed guidelines on how banks and companies will report information related to interest and dividend income of taxpayers.
Section 285BA of the Income Tax Act, 1961, and Rule 114E require “specified reporting person” to furnish a statement of financial transaction. According to the notification issued on Tuesday, banks will have to report the details of all those taxpayers whose interest income across deposits exceeds ?5,000 in a fiscal year.