Saturday, March 12, 2022

Received Notice From Income Tax Department?

If a person does a high-value cash transaction, he is likely to get a notice from the Income Tax Department

Banks, mutual fund houses, brokers, and property registrars are involved in various cash transactions. Always inform the Income Tax Department if the value of high-value transactions exceeds a certain limit.

The Income Tax Department has tied up with several government agencies to obtain financial records of individuals who conduct high-value transactions but do not file tax returns. 

Amit Gupta, MD, SAG Infotech, shares some examples of transactions that may or may not get a notice from the Income Tax Department.

Deposit in Bank FD

“Cash deposits in bank FDs should not exceed Rs 10 lakh. Bank depositors are advised to deposit cash in bank FD accounts as it should not exceed Rs 10 lakh. 

Central Board of Direct Taxes (CBD) t declared Individual deposits do not exceed the prescribed limit for one or more permanent deposits,” said Amit Gupta.

Deposit in a savings bank account

Also, Amit Gupta said, "The limit for depositing cash in a bank account is INR 10 lakh. If a savings account holder deposits more than Rs 10 lakh in a financial year, the income tax department should issue an income tax notice. 

Cash Deposits and withdrawals should be reported to the tax authorities. In a current account, the limit is Rs 50 lakh.

Pay credit card bill

According to the CBDT, cash payment of Rs 1 lakh or more should be reported in the credit card bill. 

In addition, it is necessary to pay credit card bills of Rs 10 lakh or more in a financial year. The tax department will be informed. However, the most important concern is income tax on credit card transactions. 

You need to check that your credit card spending doesn't exceed the limit, as tax authorities monitor credit card transactions. The credit card details are linked to your PAN card so that the government can easily monitor it online. 

You must disclose any major transactions while filing ITR. If you are using a credit card in any high-value transaction, you should fill up a form to avoid receiving income tax notices while filing your ITR. Be sure to disclose in 26AS," he advised.

Buy or sell real estate

The Registrar of Property is required to report to the tax authorities any investment or sale of immovable property of Rs 30 lakh or more. Rupee. Selling an asset worth more than Rs.

Cash transactions relating to shares, mutual funds, debentures, and bonds

"Some people who invest in mutual funds, stocks, bonds or debentures should ensure that their cash transactions in these investments exceed one million," Gupta said. 

The IT department has released the annual data return on financial transactions. (AIR) statement. 

Find high-value taxpayer deals. The tax authorities will collect the details of transactions of unusually high value on this basis in a particular financial year. 

An expense or transaction is considered high value if it is listed as a transaction. Price, see the radio section of your Form 26AS. Part E of Form 26AS adds details of high-value financial transactions.

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