{"id":13700,"date":"2023-04-19T16:58:31","date_gmt":"2023-04-19T11:28:31","guid":{"rendered":"https:\/\/localhost:4433\/wordpress\/?p=13700"},"modified":"2023-04-24T19:45:24","modified_gmt":"2023-04-24T14:15:24","slug":"high-value-transactions-income-tax-department","status":"publish","type":"post","link":"https:\/\/localhost:4433\/wordpress\/high-value-transactions-income-tax-department\/","title":{"rendered":"High Value Transactions Attracts Income Tax Department Notices"},"content":{"rendered":"\n<p>The<strong> Income Tax Department<\/strong> is quite likely to issue a notice to any individual who often participates in cash transactions of huge \ud83d\udcb0 value. If the value of a transaction <strong>exceeds a certain limit,<\/strong> the taxpayer must inform the Income Tax Department if he <strong>engages in High Value Transactions.<\/strong><\/p>\n\n\n\n<p>In today&#8217;s era of digital transactions, when the government keeps tabs on all of your financial dealings, the Income Tax Department may <strong>send you a notice for clarification<\/strong> when they detects significant increase in your Financial Transactions. As a group, we need to remain alert. \ud83d\udd0d<\/p>\n\n\n\n<p>The <strong>department is increasingly vigilant in its pursuit of unreported income.<\/strong> Every transaction over a certain threshold in value must now be <strong>reported using PAN.<\/strong> Property registrars and financial institutions with whom you have dealings, such as your bank, insurance, mutual fund company, and credit card company, send the <strong>report to the tax department on your behalf with information about your big transactions. <\/strong>\ud83d\udcb3<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_62 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\r\n<div class=\"ez-toc-title-container\">\r\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\r\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\r\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/localhost:4433\/wordpress\/high-value-transactions-income-tax-department\/#Income_tax_department_list_of_High_value_transactions\" title=\"Income tax department list of High value transactions \">Income tax department list of High value transactions <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/localhost:4433\/wordpress\/high-value-transactions-income-tax-department\/#Should_i_Worry_About_These_Transactions\" title=\"Should i Worry About These Transactions ?\">Should i Worry About These Transactions ?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/localhost:4433\/wordpress\/high-value-transactions-income-tax-department\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\r\n<h2 class=\"wp-block-heading\" id=\"income-tax-department-list-of-high-value-transactions\"><span class=\"ez-toc-section\" id=\"Income_tax_department_list_of_High_value_transactions\"><\/span>Income tax department list of High value transactions <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Transaction Type<\/th><th>Threshold Value<\/th><th>Reporting Entity<\/th><\/tr><\/thead><tbody><tr><td>Savings \ud83d\udcb0 &amp; Current Account Deposits<\/td><td>10 Lac (savings) or 50 Lac (current)<\/td><td>Banks \ud83c\udfe6<\/td><\/tr><tr><td>Fixed Deposits \ud83d\udcb3<\/td><td>10 Lakh<\/td><td>Banks \ud83c\udfe6<\/td><\/tr><tr><td>Foreign Currency Dealings \ud83d\udcb1<\/td><td>10 Lakh<\/td><td>Banks\/Foreign Exchange Dealers \ud83c\udfdb\ufe0f<\/td><\/tr><tr><td>Financial Instruments \ud83d\udcb9<\/td><td>10 Lakh<\/td><td>Financial Institutions \ud83c\udfdb\ufe0f<\/td><\/tr><tr><td>Credit Card Payments \ud83d\udcb3<\/td><td>1 Lakh (cash) or 10 Lakh (electronic)<\/td><td>Credit Card Companies \ud83d\udcb3<\/td><\/tr><tr><td>Real Estate Transactions \ud83c\udfe0<\/td><td>30 Lakh<\/td><td>Property Registrars \ud83d\udcdd<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"savings-current-account-deposits\"><strong>Savings &amp; Current Account Deposits<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">Banks are required by law to report to the Tax Authorities any account holders whose annual deposits exceeds total more than <strong>10 Lac in savings account <\/strong>or<strong> 50 Lac in current accounts<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"fixed-deposits\"><strong>Fixed deposits<\/strong><\/h3>\n\n\n\n<p>If you deposit Cash more than <strong>10 lakh into an Fixed Deposit<\/strong> account,&nbsp;then bank is required to report this information on<strong> form 61A,<\/strong> a statement of financial transactions to Tax Authorities<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"foreign-currency-dealings\"><strong>Foreign Currency Dealings<\/strong><\/h3>\n\n\n\n<p>Any transactions made in <strong>Foreign Currency totaling Rs.10 Lakh <\/strong>or more via a debit card, credit card, SWIFT Wire transfer, or traveler&#8217;s check in a financial year must be reported to the tax authorities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"financial-instruments-stocks-et-fs-debentures-and-bonds\"><strong>Financial Instruments Stocks, ETFs, Debentures, and Bonds<\/strong><\/h3>\n\n\n\n<p>If you <strong>invest more than 10 lakhs <\/strong>in mutual funds, bonds, equities, or debentures in a financial year, you must declare it. The Income Tax Department informed of these Deals. Your AIS statement will show these purchases &amp; sales also in <strong>FORM 26-A <a href=\"https:\/\/cleartax.in\/s\/income-tax-high-value-transactions-submit-response-under-e-campaign-compliance-portal\" target=\"_blank\" rel=\"noopener\">under SFT<\/a> <\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"credit-card-payments\"><strong>Credit Card Payments<\/strong><\/h3>\n\n\n\n<p>Annual credit card bills of <strong>Rs. 1 lakh or more paid in cash<\/strong> or <strong>Rs.10 lakh or more paid by any electronic mode<\/strong> reported to Income Tax Authorities<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"buying-and-selling-transactions-in-real-estate\"><strong>Buying and Selling Transactions in Real Estate<\/strong><\/h3>\n\n\n\n<p>All the property registrars and sub-registrars across the country are obligated to notify the tax authorities if <strong>transaction of immovable property that exceeds 30 lakh<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"should-i-worry-about-these-transactions\"><span class=\"ez-toc-section\" id=\"Should_i_Worry_About_These_Transactions\"><\/span>Should i Worry About These Transactions ?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you engage in the kinds of transactions described above, that<strong> doesn&#8217;t mean you&#8217;ve committed a crime<\/strong>; since it&#8217;s your money, you can do whatever you want with it; however, <strong>you are required to report your income &amp; its sources to the income tax department;<\/strong> otherwise, they will send you a notice asking for clarification. Trust me Penalty is very huge if you found guilty in undisclosed income &amp; sources.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"frequently-asked-questions-fa-qs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1681544751546\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What are high-value transactions that could attract an income tax notice?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Cash transactions of large value, foreign currency dealings, large credit card payments, buying and selling property, investing in financial instruments.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1681544762486\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Do I need to inform the income tax department about high-value transactions?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, if the value of the transaction exceeds a certain limit, you must inform the income tax department.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1681544778014\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is the threshold for savings and current account deposits to be reported to the income tax department<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Banks must report annual deposits over 10 lakhs in savings accounts or 50 lakhs in current accounts.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1681544795405\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Do I need to declare my investment in mutual funds and stocks to the income tax department?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, if you invest more than 10 lakhs in a financial year, you must declare it, and the income tax department is also Informed by Mutual Fund Houses.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1681544834593\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Should I be worried if I engage in high-value transactions?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, as long as you report your income and its sources to the income tax department, you don&#8217;t need to worry.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1681544873228\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What transactions related to real estate must be reported to the income tax department? <\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Any transaction involving immovable property exceeding 30 lakhs must be notified to the tax authorities by the property registrar or sub-registrar.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p>Also read about More on <a href=\"https:\/\/localhost:4433\/wordpress\/category\/taxes\/\">Taxes<\/a><\/p>\n\n\n\n<style> \nh2{background-color:#f9c74f;padding:10px 20px;border-radius:10px;display:inline-block}\nh3{background-color:#e1edff;padding:10px 20px;border-radius:10px;display:inline-block}\n\n\n\n\nol li:not(:last-child) {\n  margin-bottom: 15px; 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height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"2\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"3\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"4\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" data-star=\"5\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n    <\/div>\n    \n<div class=\"kksr-stars-active\" style=\"width: 120.2px;\">\n            <div class=\"kksr-star\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n            <div class=\"kksr-star\" style=\"padding-right: 4px\">\n            \n\n<div class=\"kksr-icon\" style=\"width: 22px; height: 22px;\"><\/div>\n        <\/div>\n    <\/div>\n<\/div>\n                \n\n<div class=\"kksr-legend\" style=\"font-size: 17.6px;\">\n            4.7\/5 - (7 votes)    <\/div>\n    <\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Income Tax Department is quite likely to issue a notice to any individual who often participates in cash transactions &#8230; 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