Income Tax: If you have recently purchased a new property or are planning to buy one, then this news is for you. Actually, let us tell you that now before buying or selling any property, you will have to give information here… otherwise you will get 100% income tax notice at home.
Income tax return filing (ITR filing) season is going on. In the return you will have to tell on which items you earn money and where the investments have been made. If you want to avail tax exemption, you will have to give information about your investments. If you do any big transaction, you will have to be careful about that also. Do the transaction, there is no problem in it. But please give this information in the tax return.
Otherwise there will be a danger of getting a notice from the Income Tax Department. After receiving the notice, it may prove costly for you to respond. If you are going to buy and sell property, then definitely keep in mind the limit of Rs 30 lakh. Similarly, if you sell foreign currency, it will be important to keep in mind the limit of Rs 10 lakh.
So let us know about those 6 big transactions, if the information of which is not given in the tax return filing, then the Income Tax Department can send you a notice. If you do not get the correct answer, action may be taken against you.
1- Buying and selling of immovable property-
If you buy or sell any immovable property, you must follow the income tax rules. If any immovable property worth more than Rs 30 lakh is bought or sold, then you will have to give this information to the property registrar and sub-registrar. This information has to be registered with the property registrar of your area.
2-Sale of foreign currency-
There is a special rule as to how much foreign currency can be sold in a financial year. If you earn Rs 10 lakh from the sale of foreign currency in a year, then this information will have to be given to the Income Tax Department. Failure to do so may result in appropriate action.
3-Amount deposited in savings and current account-
If you make a transaction of more than Rs 10 lakh in your savings account in a financial year, then you will have to inform the IT department. Similarly, if there is a transaction of more than Rs 50 lakh in the current account in a year, then this information will also have to be given to the Income Tax Department. To avoid action, please keep this rule in mind.
4-Fixed Deposit in Bank-
If you deposit more than Rs 10 lakh in cash in your fixed deposit account, then you will have to inform it to the IT department. If more than Rs 10 lakh cash is deposited in one FD account or more than one FD account, the bank will have to inform the Income Tax Department. For this, banks fill Form 61A which is a statement of financial transactions.
5-Credit card bill-
If the credit card bill is paid in cash for more than Rs 1 lakh, then it will have to be reported to the IT department. The Income Tax Department keeps an eye on all credit card transactions. If this information is not given then notice from IT may be received. If settlement of more than Rs 10 lakh is made on credit card bill in a financial year, then information about the same will also have to be given.
6-Investment in shares and bonds-
If an investment of more than Rs 10 lakh is made in cash in a mutual fund, stock, bond or debenture in a financial year, it will have to be reported. The Annual Information Return Statement contains information about your every transaction. With the help of this statement, tax officials can catch your transaction. Part E of Form 26AS contains details of all your high value transactions. Suppressing any kind of information may invite a notice.
