Income Tax Alert: These 5 High-Value Transactions Are Likely To Come Under Scrutiny

Income Tax Alert: There's been a lot of talk lately about how the Income Tax Department (ITD) tracks cashless transactions. Some folks think they can fly under the radar, but the truth is, the ITD has some pretty slick tools up its sleeve.?

It keeps a close eye on transactions that go above certain limits, whether you're swiping your card, using UPI, or even making cash deposits or withdrawals. Banks and financial institutions play their part too, reporting these transactions promptly to the tax office.

1. Big Bucks: Large Cash Deposits

Got a hefty cash deposit? If it's more than Rs 10 lakh in a year across your various accounts, the taxman might come knocking. Even if you spread it out over multiple accounts, once it adds up, you're on their radar.

Also Read:?ITR 2024: Old Vs New Tax Regime, Which Is Better For You?

2. Fixed Deposits: Crossing the 10-Lakh Mark

Thinking of stashing away over Rs 10 lakh in fixed deposits? Well, the tax department will want to know where that money came from. It's all part of their plan to keep tabs on tax dodgers.

3. Stock Market Splurge: Investments in Securities

If you're throwing more than Rs 10 lakh into stocks, mutual funds, or bonds, the ITD might raise an eyebrow. They're all about making sure your finances match up with what you're declaring.

4. Plastic Problems: High Credit Card Bill Payments

Paying off your credit card bills with a wad of cash? If it's over Rs 1 lakh, the tax folks might want to chat. They're keen to know where that money's coming from.

5. Property Puzzle: High-Value Property Transactions

Eyeing a property worth over Rs 30 lakh? Better be ready to explain where the cash is coming from. The tax department wants to put a lid on tax dodging and shady deals.

Staying in the Clear: Tips for Compliance

To steer clear of penalties and investigations, make sure you've got all your ducks in a row. Keep solid records of your bank statements and investments handy. Being transparent about your finances is the name of the game when the taxman comes calling.

The ITD isn't playing around when it comes to keeping tabs on financial transactions. By understanding the thresholds and staying transparent, you can avoid getting caught in the taxman's crosshairs. Remember, compliance is key to keeping your finances squeaky clean.

Also Read:?ITR Filing For FY23-24: All You Need To Know About Form 16