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The Income Tax Department not only imposes tax on your income, but it always keeps an eye on certain types of financial transactions. Its objective is to stop tax evasion, control black money and monitoring big expenses. Let us know about 10 common bank transactions which can bring your savings account on the radar of the Income Tax Department.
Large cash deposit in bank account: If more than Rs 10 lakh is deposited in the savings account in a year, then the bank reports this information directly to the Income Tax Department. Its purpose is to monitor cash-based tax evasion.
Large cash investment in FD: If cash of Rs 10 lakh or more is deposited in fixed deposit, the system considers it as a high-value transaction and sends it to the Income Tax Department. This is a way to track large cash transactions.
Heavy payment of credit card bill: If someone pays more than Rs 1 lakh in cash or more than Rs 10 lakh online/bank in a year, then the data goes into the IT system. With this the department can check the difference between expenditure and income.
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High-value trading in the stock market: If there is investment/sale of more than Rs 10 lakh in shares, mutual funds or bonds in a year, it is directly reported to the Income Tax Department. This is done to monitor the tax related to capital gains.
Buying and selling of expensive property: Information about any purchase or sale of real estate above Rs 30 lakh is automatically recorded in the tax system. This is part of the process of making property transactions transparent.
Purchasing property in cash: If a person pays a large amount of cash while purchasing a property, the Income Tax Department immediately considers it a high-risk transaction. This is the most important monitoring point to stop black money.
Purchase of precious jewellery: PAN is mandatory for purchasing jewelery worth more than Rs 2 lakh and this information goes directly into the IT database. Due to this, black money investment in gold and silver is banned.
Big expenditure on foreign travel: If a person spends a large amount on an international travel package, the travel agency reports this data to the Income Tax Department. The departments see whether the expenses match your declared income or not.
Locker or Valuable Deposit: Cases like purchasing high-value items like precious jewelery or gold and keeping them in a locker are also subject to reporting under the rules. This is done to understand the source of high value assets.
Large digital transactions of business: If a businessman does a large amount of business through UPI or digital payment, then this information automatically comes into the IT system. Through this the actual income of the businessman is ascertained.
