Income Tax Notice: Every taxpayer must report all his sources of income, transactions and investments while filing his income tax return. Especially, if you do any high-value transaction, then definitely keep in mind that you will have to mention it in ITR. If you have not given its record in this year’s ITR, then you should file Revised ITR.
If its details are not included in your tax records, then you may receive a notice from the Income Tax Department. The Annual Information Return (AIR) statement holds the details of all your financial transactions, these details are scrutinized by the tax authorities. The E part of Form 26A contains the details of your high value transactions.
The IT department monitors transactions of value above a certain limit. In this, there are many other transactions including bank deposits, transactions related to the purchase and sale of property, investment in mutual funds or trading of shares, in which notice can be sought on transactions above a limit.
Take a look at the list below to be alert in case you have done any such transaction and forgot to report it in your ITR.
on bank deposit
Income tax monitors high value transactions done in savings and current bank accounts. If you deposit more than Rs 10 lakh in a savings bank account in a financial year, then you will have to give this information in ITR. At the same time, this limit in the current account is Rs 50 lakh in a financial year.
on bank fixed deposits
If the bank deposits more than Rs 10 lakh cash in the FD account, then it should be reported to the IT department. If the cash deposited in a single or multiple FD account is more than Rs 10 lakh, then banks will have to give information about it through Form 61A.
buy or sell land or similar real estate
The property registrar and sub-registrar have to provide transaction details on sale and purchase of properties above Rs 30 lakh, so it is important that you enter your details while filing ITR.
sell foreign exchange
There is also a limit to selling foreign exchange. 10 lakh or more by selling foreign exchange in a financial year has to be disclosed.
investing in assets such as stocks, mutual funds or bonds
If you invest in Shares, MFs, Bonds or Debentures, note that the cash transaction limit should not exceed Rs 10 lakh in a financial year.
credit card bill payment
If you are paying your credit card payment bill in cash, the transaction should not exceed Rs.1 lakh. On the other hand, if the settlement of credit card bill is happening above 10 lakhs in a year, then it will also have to be disclosed in ITR.
(pc business league)
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