Income tax notice may be served on these high value transactions check for details

Income Tax Notice: Every taxpayer should report all his sources of income, transactions and investments while filing income tax return. Especially, if you do any high-value transaction, then definitely keep in your mind that you will have to mention it in the 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 a notice may come to you from the Income Tax Department. Annual Information Return (AIR) statement keeps the details of all your financial transactions, this statement is checked 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 transactions above a limit can call for notice.

To be alert in such cases, once have a look at the list given below, if you have done any such transaction and forgot to mention its details in your ITR.

On bank deposit

Income tax monitors high-value transactions made 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 the ITR. At the same time, in the current account, this limit is Rs 50 lakh in a financial year.

on fixed deposits of banks

If banks deposit cash of more than Rs 10 lakh in FD account, then it should be notified to the IT department. If the cash deposited in single or multiple FD accounts is more than Rs 10 lakh, then banks will have to give this information through Form 61A. 

Buying or selling land or similar immovable property

The property registrar and sub-registrar have to provide the transaction details on the purchase and sale of property above 30 lakhs, so it is important that you enter your details while filing ITR.

selling foreign currency

There is also a limit on selling foreign currency. 10 lakh or above by selling foreign currency in a financial year, it has to be disclosed. 

Investing in assets like shares, mutual funds or bonds

If you invest in shares, MFs, bonds or debentures, note that the cash transaction limit should not exceed 10 lakhs in a financial year.

credit card bill payment

If you are paying your credit card payment bill in cash, then this transaction should not exceed Rs 1 lakh. At the same time, if the settlement of credit card bill is going above 10 lakhs in a year, then it will also have to be disclosed in the ITR.