Which Transactions Must Be Reportable to the Income Tax?

A notice from the Income Tax Department is always possible for someone who conducts high-value transactions. In order to obtain the financial information of those who participate in high-value transactions but fail to report them when filing their taxes, the I-T Department has agreements with several governmental entities.

We are aware that understand the procedures, and submitting your tax return properly can be difficult for you. We are one of the top tax consultants in Kochi, Kerala, and we can aid you in maintaining your tax obligations. We can offer suggestions on the best areas to concentrate on and how to expand as a business consultant who closely collaborates with your company and is aware of your business objectives.

Here are a Few Transactions that must be Reported to the Income Tax

A bank must be notified if someone deposits more than Rs. 10 lakh in one or more fixed deposits, according to a central board of direct taxation announcement. You can receive a notice from the income tax authorities if you conduct a high volume of transactions.

If a person with a savings bank account deposits more than 10 lakh in a fiscal year, the Income Tax Department will discover this and notify the account holder in question. As a result, you must inform the tax authorities if your account’s cash withdrawals and deposits go over the limit. You can make the right decision with the aid of our tax advisory services.

According to the Central Board of Direct Taxes, the income tax division should be notified if the amount of cash used to pay bills using credit cards surpasses Rs. 1 lakh. Furthermore, every payment made to settle credit card debt in a financial year that is 10 lakh or more must be notified to the tax authorities. Your credit card information and pan card information are interlinked, making it simple for the government to keep track of every transaction.

Any transaction involving the purchase or sale of immovable property that exceeds the threshold amount must be notified to the income tax division. If the price exceeds Rs. 30 lakh or more, property buy/sell transactions must be notified to the income tax authorities.

Any individual who sells foreign currency for Rs 10 lakh or more in a fiscal year, together with any credit in that currency, using a debit card or credit card, or who insures a traveler’s check, draught, or other instrument, must notify the income tax department.

A tax consultant or advisor’s main responsibility is to assist individuals or organizations with filing their taxes. If you are keen enough in receiving tax advisory services for your business, stay in touch with our team. For more information, please contact us at vbvassoc@gmail.com or call +91 980 901 2123.