The deadline for submitting Income Tax Returns (ITR) is quickly approaching. To avoid any fines or penalties, taxpayers must file their ITR for FY 2021–22 online before the deadline.
Individuals and salaried employees whose accounts do not need to be audited have until July 31 to file their ITRs. The due date is October 31 for taxpayers whose accounts need to be audited.
Since the time for filing income tax returns is quickly coming, it is best to be aware of the specifics. If you neglect to disclose high-value transactions in a particular year, you may receive a notification from the authorities.
If you fail to report high-value cash transactions that above a certain threshold in your income tax returns (ITR) filing, you will probably receive a notice from the income tax department.
The Income Tax Department monitors high-value cash transactions, such as share trading, mutual fund investments, bank deposits, and investments in real estate. You must alert the IT department if transaction volume exceeds the threshold limit to prevent receiving a notice.
In order to gain access to the records of the people involved in high-value transactions, the IT department has agreements in place with a number of governmental organisations and financial institutions.
The tax department sends email and SMS alerts concerning the non-disclosure of high-value transactions associated with a permanent account number as part of its e-campaign to encourage voluntary compliance and prevent issuing the notice and scrutinising taxpayers (PAN).
Read on for information on the individual taxpayers’ July 31 deadline to file their income tax returns (ITR) for the fiscal year 2021–2022 as well as the differences between the old and new tax slabs.
Here are a few transactions that, if not disclosed in the ITR, may draw attention from the IT department.
Deposits to Savings Bank Accounts, Current Accounts and Fixed deposits
Any transaction in a savings bank account that exceeds Rs. 10 lakh within a fiscal year needs to be reported to the IT department. The threshold limit for current accounts is also 50 lakh rupees.
Any cash deposits into bank FD accounts that exceed 10 lakh must be reported to the IT division. If the total amount placed in one or more fixed deposits exceeds the defined limits, the bank must declare the transactions by completing form 61A, a statement of financial transactions.
Bills for credit cards
Cash payments made for credit card bills over one lakh rupees should be notified to the IT department. Any high-value credit card purchase that is concealed could result in detection by the Income Tax department, which keeps track of all credit card transactions. Settlements for credit card debt that over 10 lakh in a fiscal year must be reported in the ITR.
Foreign currency sales
The Income Tax agency shall be notified of any proceeds of the sale of foreign currency that total at least 10 lakh in a fiscal year.
Purchase or sale of moveable property
It is required that every property registrar and sub-registrar in the nation notify the tax authorities of the sale or purchase of any moveable property costing more than 30 lakh.
Bonds, debentures, mutual funds, and stocks
The annual cash transaction cap for purchases of mutual funds, equities, bonds, or debentures shall not exceed 10 lakh.
Financial transaction information is included in the Annual Information Return (AIR) statement, which the tax authorities use to identify high-value transactions. The information on high-value transactions is all contained in Part E of the Form 26AS.
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