In this digital world do remember all your financial transactions may be supervised and monitored by the Income Tax Department. Infact Financial institutions should report “High Value Transactions” to the I.T Department mandatory.
To know which transactions may levy income tax notice on you, read the full story-
- Savings a/c Deposits– In any case if you deposit more than 10 Lakhs in a financial year, you should reveal the source of the funds. If you are unable to clarify the source of funds, you will get income tax notice sooner. So be ready with the income proof while dealing high value transactions
- Bank Fixed Deposits– If you make fixed deposits of more than 10 Lakhs in banks you may levy income tax notice. Do remember that the prescribed limit “10 Lakhs” is applicable across all bank a/c’s linked to your Pan Number.
- Purchase of Shares, Mutual Funds, Bonds and Debentures– If you are buying shares, mutual fund units aggressively you may levy income tax notice. Be sure that your purchases should not be more than “10 Lakhs”.
If you do purchases more than 10 Lakhs you should notify the transactions in your “Form 26AS” which would reflect in the “Annual Information Statement”(AIS) of the income tax portal. It would be helpful in filing I.T Returns
- Purchase of Land/ Residential Property– If you purchase commercial property or any residential house worth more than “30 Lakhs” then you will be monitored by the income tax department.
You should reveal your income source in “Form26AS” which would be helpful in filing I.T Returns. This high value transactions(30 Lakhs or more)in real estate dealings are closely monitored by the I.T Department.
- Credit Card Bills– If you are paying Credit Card Bills worth more than 1 Lakh you would be under the eye of the I.T Department.
Infact your credit card issuing authority has the right to report your credit card bill history to the I.T Department.
Do remember that all your transactions are linked to your Pan number and so the transactions are easily accessed by the I.T Department.
So while doing high value transactions remember all the above permissible limits and if you have done above that permissible limits, you will be levied income tax notice sooner