With effect from April 1, any high value transactions and cash receipts beyond a certain limit will be reported to Income tax department. These transactions will include cash receipts or withdrawal, purchase of shares, immovable property, term deposits, mutual funds and sale of foreign currency.
It will be reported online in a prescribed format for which Form 61A has been introduced. An individual should make sure that he reports all his high value transactions when filing his returns.
In case of failure to notify the same, there are chances that he may receive notice from the tax department.
The report of purchase & sale of all immovable property exceeding Rs 30 lakh will be reported to the Income Tax authorities.
Individuals who are professions will be required to report cash payment, if it exceeds Rs 2 lakh for sale of any goods or services to the tax department.
If any cash deposited exceeds Rs 10 lakh or more in a financial year, in one or more accounts of a person, banks will report the same to the Income Tax department.
Deposits in current account
Cash deposits or withdrawals exceeding Rs 50 lakh or more in a particular financial year will be reported by the bank to the I-T authorities.
Any cash payment of Rs 10 lakh made towards purchase of bank drafts or pre-paid instruments will be reported to the income tax department by the bank.
When an individual makes investment in shares, bonds, mutual funds for an amount more than Rs 10 lakh in a financial year, the company will report about the transaction to the department.
Credit card payment
Any credit card payment of more than Rs 2 lakh in a financial year will be reported.
If an individual invests more than Rs 1 lakh, the same will be reported to the tax department.
If an investor buys mutual funds units worth more than Rs 2 lakh. The same should be reported while filing his tax returns.
If an investor makes an investment worth more than Rs 1 lakh, the transaction will be reported.