If the value of a transaction exceeds a certain threshold limit, it must always be notified to the Income Tax Department.
If a person engages in high-value cash transactions, he or she is likely to receive a notification from the Internal Revenue Service. If the value of a transaction exceeds a certain threshold limit, it must always be notified to the Income Tax Department. The Internal Revenue Service has reached agreements with a number of government agencies to access financial information of people who engage in high-value transactions but fail to mention them on their tax returns.
Here are some examples of transactions for which you may receive a notification from the IRS:
The maximum amount of cash that can be deposited in a bank FD is Rs 10 lakh. A bank depositor making a cash deposit in a bank FD account is cautioned not to exceed the Rs 10 lakh limit. The Central Board of Direct Taxes (CBDT) has announced that banks must disclose whether individual deposits in one or more fixed deposits exceed the permissible maximum.
Read More…
[pt_view id=”baa39696xe”]
A bank account’s cash deposit limit is Rs ten lakh. The Income Tax Department may issue an income tax notice to a savings account client who deposits more than Rs 10 lakh during a fiscal year.
As a result, all cash deposits or withdrawals in a bank account that exceed Rs 10 lakh in a calendar year must be reported to the tax authorities. The limit is Rs 50 lakh for current accounts.
Payments of Rs 1 lakh or higher in cash against credit card debts should be disclosed, according to the CBDT. Additionally, if a payment of Rs 10 lakh or more is made to settle credit card obligations in a financial year, the amount must be reported to the tax authorities. The income tax that applies to credit card transactions is, however, the most pressing worry. You must ensure that you do not exceed your credit card spending limit, as the tax authorities maintains track of credit card transactions because your credit card information is connected to your PAN Card, allowing the government to readily monitor your spending online. Any significant transaction should be disclosed when submitting an ITR.
Any investment or sale of immovable property of Rs 30 lakh or more must be reported to the tax authorities by the property registrar. Your Form No. 26AS should be used to report the property purchase or sale. If you buy or sell a property for more than Rs 30 lakh, you are also on the radar of the Income Tax Department. The IRS may investigate whether the buyer declared the money on his or her tax return.
Certain investors in mutual funds, equities, bonds, and debentures must limit their cash transactions in these investments to Rs 10 lakh. The Internal Revenue Service (IRS) has developed an Annual Information Return (AIR) account of financial transactions to help taxpayers track high-value transactions. On this basis, tax officials will collect information about unusually high-value transactions in a given fiscal year. Check the AIR section of your Form 26AS if any expense or transaction has been marked as a high-value transaction. The high-value financial transactions are detailed in PART -E of Form 26AS.
Any individual who receives an amount of Rs 10 lakh or more in a financial year for the sale of foreign currency, as well as any credit in that currency, whether through a debit card or credit card, or insurance of a traveller’s cheque, draught, or other instruments, must notify the Income Tax Department.