IT Department tracks high value financial transactions | Fusion - WeRIndia

IT Department tracks high value financial transactions

IT Department tracks high value transactions

To control black money and reduce tax evasion, the government is implementing several measures. As per the new guidelines and notifications of the government, all goods and service providers should reveal their high value cash transactions and inform them to the IT department.

Transactions that are incurred in high denominations are known as high value financial transactions. The Income Tax department closely monitors these transactions, which include the following:

All professionals have to inform the tax department if they receive ₹2 lakhs or more in cash for the sale of goods or services.

Banks or post offices shall report cash deposit or withdrawal or fixed deposits of ₹10 lakhs or more made in all bank accounts of an individual and ₹50 lakhs made in all current accounts to the IT department.

The Registrar or Sub-registrar of properties has to report purchase or sale of immovable property where the stamp value is ₹30 lakhs or more.

Banks shall report if ₹1 lakh or more is paid in cash against credit card bill. It is ₹10 lakhs if it is paid through cheque or NEFT.

Banks, post offices, companies or mutual fund Trustee shall report receipt of ₹10 lakhs or more from an individual or investor for acquiring shares, bonds, debentures or mutual funds. It also includes the purchase of foreign currency.

As these high value transactions are reported to the IT department by concerned persons, the income department cross-checks the income tax returns of taxpayers. They also check whether people have filed the return properly and disclosed their true income or not, and thereby paid the correct tax.

If the ITR is true and accurate, then it is fine or else the person will be notified about the mismatch.

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