High-Value Transactions: The Income Tax Return (ITR) filing season has officially commenced, especially following the issuance of Form 16 by employers, which has prompted many salaried taxpayers to begin the submission process. Notably, the 15 September deadline this year deserves careful observance, yet professionals caution against deferring submission until the final date. Transparency remains essential: taxpayers must refrain from concealing any sources of income. Reported income should align with recorded high-value transactions. Tax experts assert that the Income Tax Department meticulously monitors all financial activities related to individual taxpayers, with particular scrutiny directed towards transactions that exceed prescribed thresholds. When high-value activity appears inconsistent with the income reported on the return, it is almost certain that the taxpayer will attract Departmental attention. The main objective of this surveillance is to deter and detect tax evasion.Bank deposit records are now closely monitored. The Income Tax Department tracks high-value transactions reported by banks and financial institutions in electronic data streams. Vivek Jalan, partner at Tax Connect Advisory Services LLP, explains that law requires institutions to notify tax authorities of categories of transactions clearly defined in the rules. For instance, if a person deposits aggregate savings of over ₹10 lakh across accounts in any financial year, the bank must notify the Income Tax Department automatically. Alert triggers also encompass withdrawals. Should an individual withdraw or deposit cash of more than ₹50 lakh from a current account, the institution must relay the matter to the Department. Furthermore, if a taxpayer effects a credit card payment exceeding ₹10 lakh in a financial year—excluding cash transactions—the credit card bank is compelled to report. Receipt of ₹2 lakh or more in the taxpayer’s account, identified as payment for goods or services, also generates obligatory notice to the tax authorities.The Income Tax Department’s most potent tools do not consist of continuous monitoring; rather, they rely upon the Annual Information Statement (AIS) and Form 26AS. These consolidated records compile all documentary evidence of a taxpayer’s economic activity, no matter the scale. Consequently, a lone acquisition or divestiture of equity securities appears within the dossier, as do the cumulative gains or losses recorded by trading accounts. Whether the transaction is a modest mutual-fund tilt or the execution of a leveraged derivative strategy, the particulars find their place within these official litanies.
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