Your Attention Please: Income Tax Department is keeping Vigilant Eye on your High Value Transactions

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Business Mantra: Faridabad


Income Tax Department has prepared a list of almost 60 Lakh “High Value Transactions” in the Financial Year 2015-16, where detail of such transactions has not been shown in the Income Tax Returns (ITR) filed by the Individuals/entities or such persons have not filed their ITR. Then the question arises that how the department has come to know about these “High Value Transactions”. One might be under the impression that somebody has deliberately informed the department about such transactions. Whereas the department has developed such a system, from where, information is automatically received.

Now the question again arises that what is such information. Some organizations submit Annual Information Report (AIR) at the end of each Financial Year and from the AIR Income Tax Department gets information, on basis of PAN numbers at the end of each Financial Year of such “High Value Transactions”:

  1. Registrars and Sub-Registrars of Tehsils give information to all transactions of Rs.30 Lakhs and above for sale/purchase of immovable properties.
  2. If an individual, deposits cash in his or her Savings Bank Account, whether on one occasion or in small amounts aggregating to Rs.10 Lakhs or above in a Financial Year, it is mandatory for Banks to give such information through AIR to Income Tax Department.
  3. If anyone invests in the share issue of a company for Rs.1 Lakh or above in a Financial Year, such information reaches the Income Tax Department through their AIR.
  4. If anyone invests in Debentures and Bonds of a company for Rs.5 Lakhs or above in a Financial Year, such information reaches the Income Tax Department through their AIR
  5. If RBI allots RBI Bonds of Rs.5 Lakhs or above to any person/entity in a Financial Year, such information reaches the Income Tax Department through their AIR
  6. If anyone spends Rs.2 Lakhs or above through his or her Credit Card in a Financial Year, such information reaches the Income Tax Department through their AIR
  7. If investment of Rs.2 Lakhs or above is made in Mutual Fund in a Financial Year, such information reaches the Income Tax Department through their AIR

If such “High Value Transactions” have been done by any person/entity and has not been shown through his or her ITR, then he or she should be beware of getting notices, and may get penalized and/or proceedings of Prosecution may be initiated against them.

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