ITR filing Alert! Which transactions should be disclosed to avoid notice

New Delhi: While filing Income Tax Return (ITR), remember to disclose high-value cash transactions. Failing to do so, might invite notice from Income Tax Department. The I-T department monitors such as bank deposits, mutual fund investments, property deals, and share trading exceeding specified limits. Therefore taxpayers should disclose such transaction in their Income Tax return to avoid receiving notices.

Transactions mandatory to disclose in ITR?

The Income Tax Department has set a threshold for such high-value transactions. These key thresholds include:

Transactions over Rs 10 lakh in a savings bank account or Rs 50 lakh in a current bank account should be disclosed.
Deposits above Rs 2 lakh in a single transaction are scrutinized.
For fixed deposits, any amount exceeding Rs 10 lakh within a financial year requires reporting to the I-T department.
Significant transactions like business-class air travel, tuition payments, jewellery purchases, and electricity expenses over Rs 1 lakh annually may trigger notifications from the I-T department.
Cash payments for bank drafts, pay orders, or banker’s cheques must be reported by banks or cooperative societies.
Credit card payments exceeding Rs 1 lakh annually or exceeding Rs 10 lakh across all credit cards through non-cash methods are monitored.

Revised ICICI Bank FD rates

For property transactions exceeding Rs 30 lakhs, buyers must disclose the source of funds. Urban and rural areas have specific thresholds of Rs 50 lakhs and Rs 20 lakhs, respectively, subject to state-specific regulations. It’s essential to include the source of funds in registration documents or submit Form 26QB to the IT Department for property acquisitions. Neglecting to declare the source of funds may lead to penalties, tax assessments, or investigations.

Shriram Finance offers high FD rates

What to do if you receive I-T notice

In case of a notice from Income Tax department regarding high-value transactions, preparing adequate documentation such as bank statements or investment records is crucial to explain the fund origin. Consulting a knowledgeable tax consultant for personalised advice is advisable to ensure compliance with tax laws and minimize legal risks in financial planning.

 ITR filing: For property transactions exceeding Rs 30 lakhs, buyers must disclose the source of funds. Urban and rural areas have specific thresholds of Rs 50 lakhs and Rs 20 lakhs, respectively, subject to state-specific regulations.  Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today