High Value Transactions- List of Transactions Attracting Notice from Income Tax Department

The taxpayer must report transactions on the income tax return in case the transactions are made in higher amounts or exceed a threshold. The department collaborates with various government agencies to gather the financial information of taxpayers who engage in high-value transactions but are not reported when filing the ITR.

Take a look on a list of transactions for which a taxpayer might receive a notice from the Income Tax Department:

List of High Value Transactions-

Savings and Current Account Deposits

It is mandatory for banks to report any transaction exceeding 10 lakhs in savings bank account in a financial year to the I-T department. Similarly, the threshold limit for current accounts is 50 lakh.

Fixed deposits in bank

Cash deposits in bank FD accounts that exceed 10 lakh must be reported to the I-T department. If the total amount deposited in single or multiple fixed deposits exceeds the specified limits, banks must disclose the transactions by filing form 61A, a statement of financial transactions.

Credit card bills payment

Cash deposits in bank FD accounts that exceed 10 lakh must be reported to the I-T department. If the total amount deposited in single or multiple fixed deposits exceeds the specified limits, banks must disclose the transactions by filing form 61A, a statement of financial transactions.

Sale or purchase of property

All property registrars and sub-registrars in the country are required to notify the tax authorities of the sale or purchase of any immovable property worth more than Rs 30 lakh.

Shares, mutual funds, debentures and bonds

In a fiscal year, the cash transaction limit for investments in mutual funds, stocks, bonds, or debentures should not exceed 10 lakh.
The Annual Information Return (AIR) statement contains financial transaction details, and the tax authorities use it to track high-value transactions. All details of high-value transactions are contained in Part E of your Form 26AS.

Purchase of foreign exchange

Amounts of 10 lakh or more from the Purchases of foreign exchange, including travellers cheques and forex cards, as well as debit or credit cards must be reported to the Income Tax department.

Taxpayers should ensure that all transactions are properly disclosed in their income tax returns.

3 thoughts on “High Value Transactions- List of Transactions Attracting Notice from Income Tax Department”

  1. Govt. has no authority to know the private dealings of individuals. Govt. has failed in all fronts to generate employment and generate wealth and hence this high handed behaviour of extortion in the name of indirect taxes and in the name of income tax TDS. In few years even people who are paying income tax and other taxes also will be made beggars by the dispensation and nothing be left to collect or to give narratives about this extortion rackets
    using personal central agencies for extortion.!!’

  2. Govt’s efforts to increase the direct tax base & to make the people to pay the applicable taxes is well appreciated & applauded. Citizens must make a sincere efforts in contributing in the overall development of our country.

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