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.

Income Tax: Do not delay anymore in filing ITR for FY19, know what experts say

Income Tax: Do not delay anymore in filing ITR for FY19, know what experts say
On 29 July, the government had extended the deadline for filing income tax returns for the financial year 2018-19 once more, giving relief to the taxpayers. It is estimated that the deadline will not be extended any further. A nationwide lockdown was implemented in the country from 22 March 2020 in the wake of the Corona virus epidemic. This disrupted all activities. With the last date of the financial year 31 March also coming in lockdown period, the government had to go ahead with several deadlines, one of which is the deadline for filing income tax returns.

The Income Tax Department has extended the deadline for filing income tax returns for the financial year 2018-19 for the third time. Now taxpayers can file their returns by 30 September. Earlier, the government had extended this deadline to 31 July. Whereas according to tax law, ITR could be filed only till 31 March. Similarly, investments were to be made by 31st of March only to receive various exemptions in income tax. This deadline was extended by the government till 31 July 2020.
After a four-stage lockdown, the central government began removing restrictions and the unlocking process. Unlock-3 came after two unlocks, with more and more activities restarted. Sanctions are slowly being removed and will be completely removed in the coming time. Those who still have not filed income tax returns for the completed financial year on 31 March 2020, they should pay this tax now. According to Balwant Jain, chief editor and tax and investment expert of ApnaPassa.com, taxpayers should not wait any longer.

No further deadline

Jain believes that this was the last chance to move ahead of the deadline for filing ITR, as the government is not in the mood to extend the deadline for taxpayers unlimited. It is also clear from this that the government has not extended the investment deadline beyond 31 July for income tax exemption. Also, Jain said that taxpayers will also have to pay one percent interest on the shortfall till April 1, 2019. However, in the event of shortfall of less than 10 percent of the gross tax liability, no punitive interest will be payable. Keep in mind here that taxpayers are required to pay late fees for delay in filing ITR as well as interest on delay in payment of taxes.
If the ITR is not filled even by the extended date ..

According to Balwant Jain, if taxpayers fail to deposit the outstanding income tax after tax exemption even to the extended deadline, then the Income Tax Department may impose a minimum penalty of 50 per cent penalty for failing to pay the ITR paid by you. In addition to the penalty fee, you will also have to pay interest for the delayed period. Also, if the tax amount is more than ten thousand, then the Income Tax Department can also initiate prosecution proceedings against you. It can carry a sentence ranging from three months to seven years.