These High-Value Transactions can invite Income Tax Notice, Check Details :-My Sandesh:-Used here for educational purposes only

 

New Delhi :

New Delhi :

The Income Tax Department monitors high-value cash transactions beyond a specific limit.

If you fail to mention such transactions in your Income Tax Returns (ITR) filing, you may get a notice from the authorities.

The I-T Department keeps a watch on high-value cash transactions, including bank deposits, mutual fund investments, property-related transactions and share trading.

If transactions surpass the threshold limit, you must notify the I-T department to avoid getting a notice.The I-T department has entered into agreements with several government agencies and financial institutions to access the records of the individuals regarding the high-value transactions.

As part of its e-campaign to promote voluntary compliance and avoid issuing the notice and the scrutiny of taxpayers, the tax department sends e-mail and SMS alerts about the non-disclosure of high-value transactions linked to a permanent account number (PAN).

Avoid THESE Transactions

Here are a few transactions which may attract notice from the I-T department if not reported in the ITR.

1. Savings Bank Account and Current Account Deposits

Any transaction exceeding ₹ 10 lakh in a savings bank account in a financial year should be disclosed to the I-T department. Similarly, for current accounts, the threshold limit is ₹ 50 lakh.

2. Fixed Deposits in banks

Cash deposits in bank FD account exceeding ₹ 10 lakh need to be notified to the I-T department.

Banks will have to disclose the transactions if the total amount deposited in single or multiple fixed deposits exceeds the specified limits by filing form 61A,

a statement of financial transactions.

3. Credit Card bills

Credit card bill payments above ₹ 1 lakh in cash should be reported to the I-T department.

The Income Tax department monitors all credit card transactions, and hiding any high-value transaction linked to credit cards could attract notice.

Settlements above ₹ 10 lakh in a financial year towards credit card bills should be disclosed in the ITR.

4. Sale or purchase of immovable property

All the property registrars and sub-registrars across the country are mandated to inform the tax authorities about the sale or purchase of any immovable property exceeding ₹ 30 lakh.

5. Shares, mutual funds, debentures and bonds

The cash transaction limit concerning investments in mutual funds, stocks, bonds, or debentures should not exceed ₹ 10 lakh in a financial year.

The Annual Information Return (AIR) statement contains details of financial transactions, and the tax authorities trace the high-value transactions through this.

Part E of your Form 26AS contains all details of high-value transactions.

6. Sale of foreign currency  

An amount of ₹ 10 lakh or more in a financial year from the sale of foreign currency should be reported to the Income Tax department.