Beware of High-value transactions


The High-value transactions periodically are reported to the Income Tax Department if the value surpasses a particular threshold limit.

There is a strong possibility that if somebody makes a high-value cash transaction, they might get a notice from the Income Tax Department. 

The Income Tax Department has an agreement to obtain financial records of individuals who indulge in high-value transactions with multiple government agencies but do not report them while filing their returns.

Due to several transactions which you may receive a notice from the Income Tax Department:

  • First, the cash deposits in bank FD should not exceed Rs 10 lakh. It is recommended to a bank depositor making a cash deposit in a bank FD account that it must not exceed the Rs 10 lakh cap. If the personal deposits are higher than the prescribed limit in one or more fixed deposits, the Central Board of Direct Taxes (CBDT) has declared that banks must disclose.
  • In a savings bank account, the Deposit will be Rs 10 lakh. If savings account holders in a financial year deposit over Rs 10 lakh, the Income Tax Department may send an income tax notice. The cap is Rs 50 lakh in current accounts.
  • Paying credit card bills of Rs 1 lakh or more in cash against credit card bills should be reported. If payment of Rs 10 lakh or higher is in a financial year to settle credit card bills then this is needed to disclose to the tax department. The foremost crucial concern is the income tax that is applied to credit card transactions. You are required to verify that you don’t cross your credit card spending cap, since the tax authority keeps track of credit card transactions as your credit card details are in link by your PAN Card, and by the government, it will be easy to monitor online. While filing ITR, each large transaction should be revealed. 
  • Any investment or sale of immovable property for an amount of Rs 30 lakh or more to the tax authorities then the property registrar must have to disclose. The property buy or sale transaction should be reported on your Form No. 26AS. 
  • Those who invest in mutual funds, stocks, bonds, or debentures must ensure that their cash transaction in these investments does not exceed Rs 10 lakh. In a particular financial year, Tax officials must be collect details against unusual high-value transactions on this data. As per the high-value transaction, check the AIR section of your Form 26AS. PART -E of Form 26AS consolidates details about the high-value financial transactions.

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