ITR Filing: Not reporting these high-value transactions may get you an income tax notice

ITR Filing: Not reporting these high-value transactions may get you an income tax notice -

The I-T Department receives information from multiple government agencies on high-value transactions conducted by individuals. So if you do not report those transactions in the ITR the I-T Department may send you a notice seeking an explanation on the same.

Taxpayers are required to report some of the high-value transactions in their income tax return (ITR), failing which they may receive a tax notice from the Income Tax Department. Worth mentioning here is that the I-T Department receives information from multiple government agencies on high-value transactions conducted by individuals. So if you do not report those transactions in the ITR the I-T Department may send you a notice seeking an explanation on the same.

Here are the high-value transactions which you taxpayers should report in their ITR:

Making fixed deposit above Rs 10 lakh with cash

If you are making a fixed deposit of more than Rs 10 lakh in cash then it must be reported in the ITR. The Central Board of Direct Taxes (CBDT) has asked banks to report such individual deposits if they exceed Rs 10 lakh in value.

Making cash deposit of more than Rs 10 lakh in savings bank accounts

If a savings account holder deposits more than Rs 10 lakh in his account during a financial year, the Income Tax Department may serve an income tax notice. Therefore, cash deposits and withdrawals in a bank account crossing the Rs 10 lakh limit in a financial year must be revealed to the tax authorities. In current accounts, the cap is Rs 50 lakh.

Paying credit card bills in cash

Making credit card bill payment of Rs 1 lakh or more in cash should also be reported. Additionally, if a payment of Rs 10 lakh or higher is made in a financial year to settle credit card bills, the payment must be disclosed in the ITR.

Purchase or sale of an immovable property

Property registrars are required to reveal any investment or sale of immovable property for an amount of Rs 30 lakh or more to the tax authorities. So, in case, you are purchasing or selling property for more than Rs 30 lakh, then you are required to report the same to the I-T Department.

Shares, mutual funds, debentures, and bonds related cash transactions

If you have made some investments in mutual funds, stocks, bonds, or debentures using cash then you must ensure that the transaction value does not exceed Rs 10 lakh. The I-T Department has created an Annual Information Return (AIR) statement of financial transactions to trace high-value transactions of taxpayers. Tax officials will gather details against unusual high-value transactions on this basis in a particular financial year.

Sale of foreign currency/ expenses in foreign exchange

If you have received an amount of Rs 10 lakh or more in a financial year for sale of foreign currency you need to report that in ITR. Also, any credit in foreign currency, through a debit card or credit card or issuance of traveller’s cheque, draft or other instruments, should be notified to the I-T Department.