The Income Tax Department is now using modern data analysis techniques to detect those who have hidden or shown less income. For this, the department is working with various government agencies to collect information about such individuals who spend heavily but do not report their income properly.
What is the new update?
The Central Board of Direct Taxes (CBDT) has directed Self-Reporting Organizations (SROs) such as banks, post offices, cooperatives, fintech companies, and mutual fund houses to provide complete information about high-value transactions made during the financial year by May 31 of the next financial year.
What are high-value transactions?
When a bank or institution deposits or withdraws a large amount in a person’s account, which exceeds a certain limit, it has to be reported to the Income Tax Department. This is reported under ‘Statement of Financial Transactions (SFT)’ in Form 61A or as a reportable account in Form 61B. This allows the department to keep track of the individual’s financial transactions and ensure tax compliance.
Also read: Income tax refund status FY 2024-25: Check without logging into I-T dept’s e-filing portal — here are 2 other options
Which transactions are reportable to the Income Tax Department?
1. Cash payment against bank draft, pay order, bankers cheque or RBI prepaid instrument
Limit: Rs 10,00,000
Reporting: Banks or co-operative societies will report through Form 61A.
2. Cash deposit in savings bank account
Limit: Rs 10,00,000
Reporting: Banks, co-operative societies and post offices.
3. Cash deposit or withdrawal in current account
Limit: Rs 50,00,000
Reporting: Banks or co-operative societies.
Also read: Income Tax Department opens online filing for ITR-1 & ITR-4 – Check eligibility, deadline and other details here
4. Purchase or sale of immovable property
Limit: Rs 30,00,000
Reporting: Property Registrar or Sub-Registrar through Form 61A.
5. Cash investment in shares, mutual funds, debentures or bonds
Limit: Rs 10,00,000
Reporting: Related company or mutual fund trustee.
Note: No reporting if amount is transferred from one scheme to another.
6. Cash payment of credit card bill
Limit: Rs 1,00,000
Reporting: Banks or co-operative societies.
7. Non-cash payment of credit card bill
Limit: Rs 10,00,000
Reporting: Banks or co-operative societies.
» Read More
