The Income Tax Department is constantly monitoring our high-value transactions. If you forget to mention this transfer in your income tax return, you will face an income tax notice.
The Income Tax Department is constantly monitoring our high-value transactions. If you forget to mention this transfer in your income tax return, you will face an income tax notice.
The Income Tax Department also monitors bank deposits, mutual fund schemes, transactions related to the sale and purchase of property, and stock transactions. If the amount of transfer exceeds the specified limit, the income tax department will have to face notice.
The Income Tax Department has tied up with various departments of the government and several units of the financial sector to obtain details of high-value transactions made by individuals.
What transactions may face the notice of the Income Tax Department:
Savings Account and Current Account
Transfers of more than Rs 10 lakh in a financial year in savings accounts may face a notice from the Income Tax department. If there is a transfer of more than Rs 50 lakh in the current account deficit and it is not reported, an income tax notice will be issued.
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Deposit funds in banks
When we pay more than Rs.10 lakh as deposit funds in banks, we come under the supervision of the Income Tax Department. Banks will inform the Income Tax Department whether the money deposited by a person as a deposit fund is deposited in one go or separate deposits.
Credit card bill
When paying a credit card bill, we come under the scrutiny of the Income Tax Department when we pay more than Rs.1 lakh. The Income Tax Department will monitor all high-speed transactions and credit card transactions. Credit card bill payments of up to Rs.10 lakh in a financial year must be reported in the income tax return.
Sale and purchase of immovable assets
Any purchase or sale of immovable property must be registered in the office of the Registrar, similarly, any sale or purchase of immovable property worth more than Rs.30 lakhs must be reported to the Income Tax Department.
Shares, Mutual Funds, Shares
Purchases of mutual funds, stocks, and shares should not exceed Rs.10 lakhs in a financial year.
Selling foreign currency
Even if the sale of foreign currency is more than Rs.10 lakh per financial year, it must be reported to the Income Tax Department.
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