Income Tax Notice For These High-Value Transactions

The Income Tax Department monitors high-value cash transactions beyond a specific limit and if you fail to mention such transactions in your Income Tax Returns (ITR) filing, you are likely get a notice.  

The I-T Department keeps a watch on high-value cash transactions, including bank deposits, mutual fund investments, property-related transactions and share trading. 

Here are a few transactions which may attract notice from the I-T department if not reported in the ITR.

1. Savings Bank Account and Current Account Deposit

Any transaction exceeding ₹ 10 lakh in a savings bank account in a financial year should be disclosed to the I-T department. Similarly, for current accounts, the threshold limit is ₹ 50 lakh. 

2. Fixed deposits in bank - Cash deposits in bank FD account exceeding ₹ 10 lakh need to be notified to the I-T department. 

3. Credit card bill - Credit card bill payments above ₹ 1 lakh in cash should be reported to the I-T department.  

4. Sale or purchase of immovable property

All the property registrars and sub-registrars across the country are mandated to inform the tax authorities about the sale or purchase of any immovable property exceeding ₹ 30 lakh.   

5. Shares, mutual funds, debentures and bond

The cash transaction limit concerning investments in mutual funds, stocks, bonds, or debentures should not exceed ₹ 10 lakh in a financial year.

6. Sale of foreign currency - An amount of ₹ 10 lakh or more in a financial year from the sale of foreign currency should be reported to the Income Tax department.