Now, the Income Tax Department maintains surveillance over your financial activities and banking transactions. In fact, the due date for filing income tax returns is approaching. During this time, the department is monitoring people whose accounts have strange activity. In the event you did a significant transaction from your account without paying the requisite taxes, then you will need to proceed with caution. To monitor such accounts, the Income Tax Department is swiftly doing scrutiny using AI. If you have done a cash transaction of Rs 50 thousand or more from your account, then you are in line to receive an income tax notice.What do experts sayAs CA Yogendra Kapoor explains, under the Income Tax Act, such individuals must notify the department of any unusual transactions or explain the source of such income. Non-compliance would result in the Income Tax Department maintaining fraudulent records. For instance, if you have deposited or withdrawn more than 50 000 rupees repeatedly, then the income tax department should know the source. Actually, the Bank sends its information to the Income Tax Department through Annual Information Report, AIR. On the basis of AIR, the Income Tax Department decides whether there has been any unusual transaction in the persons account.What is the deposit limit in the bankAccording to specialists, there are no restrictions for depositing or withdrawing a specific amount from your bank. However, for larger amounts, especially if there are multiple transactions, you will need to notify the Income Tax Department. Furthermore, if you deposit more than ten lakh rupees in your savings account during a financial year, then you must report it to the Income Tax Department. In the same manner, if you paid or received 50 thousand rupees or more in a single transaction, then you must report it to the department. In such scenarios, if you are looking to avoid complications, it is best to not make high value transactions.
Around the web
