Individuals must report it in their ITR if they hold fixed deposits worth over Rs 10 lakh in one or multiple accounts. A separate Annual Information Return (AIR) has been created by the I-T department to track high-value cash transactions.
New Delhi: In the past few years, Income Tax Department has become highly alert to cash transactions. Now, Indian banks and other institutes allow cash transactions up to a certain limit only. It is highly advisable by various experts that people should report their high-value cash transactions in the income tax return. Violation of any sort may land one in trouble, according to the latest report by Mint.
Currently, the Income Tax Department has agreements with various other agencies to obtain the financial records of an individual who is found indulging in high-value transactions, without reporting them in the ITR, the report stated.
A separate Annual Information Return (AIR) has been created by the I-T department to track high-value cash transactions of the taxpayers, the report further added. The last date for filing ITR for financial year 2020-21 is December 31, 2021.
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Real Estate Property
In case of sale or purchase of any real estate property, which has a value of more than Rs 30 lakh, the individual must mention it in the ITR. The information can also be revealed by the property registrar. It is advisable that taxpayers report it in Form 26AS.
If you transact in stock markets and buy/ sell shares, debenture and bonds, it is advisable that you mention it in your ITR if the value of cash transactions exceeds Rs 10 lakh, annually.
Fixed Deposits (FD)
According to the Central Board of Direct Taxes (CBDT), the banks have been advised to report fixed deposits exceeding Rs 10 lakh. Individuals, too, must report it in their ITR if they hold FD worth over Rs 10 lakh in one or multiple accounts.
Credit Card Payment
This is a more complex area. In case of a credit card bill payment, a cash payment of more than Rs 1 lakh has to be reported to the I-T department. But if the value of the bill exceeds Rs 10 lakh, it is required that the individual submits the bill along with the ITR.
Savings Account And Current Account
In the case of a savings account, if any account is reporting transactions (deposit or withdrawal) exceeding Rs 10 lakh, per annum, the account holder needs to report it. For current accounts, however, the limit is Rs 50 lakh.
