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High Value Transactions- Here is a List of Transactions Attracting Notice from Income Tax Department

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Taxpayers should be alert of six types of high-value transactions, particularly those done in cash, because the Income Tax Department has become extremely vigilant. Banks, intermediaries, and other establishments will report high-value transactions involving all customers to the Income Tax Department, and failure to do so will result in fines. If the taxpayer incurs transactions in higher denominations, the transactions must be reported in the income tax return. The department works with other government agencies to obtain financial information from taxpayers who engaged in high-value transactions but did not report them on their ITR. Take a look on a list of transactions for which a taxpayer might receive a notice from the Income Tax Department:

 

List of High Value Transactions-

Savings and Current Account Deposits

It is mandatory for banks to report any transaction exceeding 10 lakhs in savings bank account in a financial year to the I-T department. Similarly, the threshold limit for current accounts is 50 lakh.

Fixed deposits in bank

Cash deposits in bank FD accounts that exceed 10 lakh must be reported to the I-T department. If the total amount deposited in single or multiple fixed deposits exceeds the specified limits, banks must disclose the transactions by filing form 61A, a statement of financial transactions.

 

High Value Transactions- Here is a List of Transactions

Credit card bills payment

Cash deposits in bank FD accounts that exceed 10 lakh must be reported to the I-T department. If the total amount deposited in single or multiple fixed deposits exceeds the specified limits, banks must disclose the transactions by filing form 61A, a statement of financial transactions.

Sale or purchase of property

All property registrars and sub-registrars in the country are required to notify the tax authorities of the sale or purchase of any immovable property worth more than Rs 30 lakh.

Shares, mutual funds, debentures and bonds

In a fiscal year, the cash transaction limit for investments in mutual funds, stocks, bonds, or debentures should not exceed 10 lakh.
The Annual Information Return (AIR) statement contains financial transaction details, and the tax authorities use it to track high-value transactions. All details of high-value transactions are contained in Part E of your Form 26AS.

Purchase of foreign exchange

Amounts of 10 lakh or more from the Purchases of foreign exchange, including travellers cheques and forex cards, as well as debit or credit cards must be reported to the Income Tax department.

Taxpayers should ensure that all transactions are properly disclosed in their income tax returns.

Read more about: income tax
Story first published: Saturday, November 26, 2022, 15:55 [IST]
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