High Value Transactions


Established 1993


	Home About About Us Our Team Services India Setup Accounting & Reporting Audit & Assurance Corporate Compliance Direct & Indirect Taxation Human Resource & Payroll Mergers & Acquisitions Offshore Accounting Business Support Clientele Articles Calculators GST Calculator Tax Calculator TDS Calculator Calculate Net Profit Calculate Net Worth Effective Capital HRA NSC EMI Auto Loan Calculator Home Loan Calculator Get No. Of Installment RERA Calculator Developers Calculator Home Buyer Delay Interest Home Buyer Refund Bulletins RBI SEBI Notification Circular Income Tax Service Tax Central Sales Tax Excise Matters Customs Company Law Labour Laws FEMA The LLP Act 2008 Accounting Standard (INDAS) Others GST VAT Delhi VAT Maharastra VAT Gujarat VAT Telangana VAT Tamil Nadu VAT IGST UTGST Compensation Cess IBC Regulation Utilities Rates of TDS TDS Rates for N.R.I us 195 Rates of Income Tax Depreciation Rates Companies Act Depreciation Rates Income Tax Act ROC Filing Fees (Cos Act, 2013) ROC Fee Structure (Cos Act, 2013) Cost Inflation Index IFSC Codes MICR Codes Rates of NSC Interest Gold and Silver Rates Rates of Stamp Duty LLP Fees National Industries Classification HSN Rate List Deduction u/s 80TTA Vs 80TTB Links Quick Links Important Links GST/VAT Links Ease Of Doing Business Acts Direct Tax Income Tax Act Wealth Tax Act Income Declaration Scheme 2016 Indirect Tax Service Tax(Finance Act, 1994) Central Sales Tax Act, 1956 The Central Excise Act, 1944 Customs Act, 1962 Entry Tax Act Corporate Laws Companies Act, 2013 Companies Act, 1956 LLP ACT SEBI Act, 1992 VAT Laws Delhi Value Added Tax Act, 2004 MVAT Act, 2002 West Bengal VAT Act, 2003 Tamilnadu VAT ACT, 2006 Karnataka Value Added Tax Act, 2003 Gujarat Value Added Tax Act, 2003 UP VAT Act, 2008 Rajasthan Value Added Tax Act, 2003 Punjab Value Added Tax Act Haryana Value Added Tax Act Telangana VAT Act 2005 Andhra Pradesh VAT Act, 2005 Bihar Value Added Tax Act, 2005 Other Statutes ESI Act, 1948 PF Act, 1952 Profession Tax Act The Indian Partnership Act, 1932 Societies Registration Act, 1860 Competition Act, 2002 Reserve Bank of India Act, 1934 MRTP Act, 1969 Equalisation Levy Act, 2016 Right To Information Act, 2005 FEMA, 1999 Maharashtra RERA RERA, 2016 Insolvency & Bankruptcy Code, 2016 Benami Property Act 1988 GST Laws IGST Act , 2017 CGST Tax Act, 2017 UTGST Act, 2017 GST (Compensation to States) Act Rules Direct Tax Rules Income Tax Rules Wealth Tax Rules 1957 Income Declaration Scheme Rules 2016 Indirect Tax Rules GST Valuation Rules , 2016 Service Tax Rules CST (Delhi) Rules, 2005 CST (Maharashtra) Rules Customs Valuation Rules Cenvat Credit Rules, 2017 Entry Tax Rules Corporate Laws Rules Companies Rules, 2014 LLP Rules, 2009 LLP Winding up Rules, 2012 Cos Unpaid Dividend Rules, 1978 VAT Laws Rules Delhi VAT Rules, 2005 Maharashtra VAT Rules, 2005 West Bengal VAT Rules, 2005 Tamilnadu VAT Rules, 2007 Karnataka VAT Rules, 2005 Gujarat VAT Rules, 2006 Uttar Pradesh VAT Rules, 2008 Rajasthan VAT Rules, 2006 Punjab VAT Rules Haryana VAT Rules, 2003 Telangana VAT Rules 2005 Andhra Pradesh VAT Rules, 2005 Bihar Value Added Tax Rules, 2005 Other Statutes Profession Tax Rules NBFC Deposits Directions, 1998 NBFC & Misc NBC (Advt) Rules, 1977 NBFC Auditor Report Directions, 2008 Delhi Labour Welfare Fund Rules, 1997 Cost records and audit Rules, 2014 Baggage Rules, 2016 Equalisation Levy Rules, 2016 NCLT And NCLAT Rules Insolvency & Bankruptcy Rules Benami Property Rules, 2016 GST Rules CGST Rules, 2017 IGST Rules 2017 Forms Income Tax Forms ROC Forms (Cos Act, 2013) ROC Forms (Cos Act, 1956) Income Declaration Forms Wealth Tax Forms Service Tax Forms Companies Unpaid Dividend Forms NBFCs Forms LLP Winding up FEMA Forms LLP Forms CGST Forms GST Forms Accounts and Records Advance Ruling Appeals and Revision Assessment and Audit Composition Demands and Recovery Input Tax Credit Inspection, Search and Seizure Offences and Penalties Payment of Tax Refund Registration Returns Transitional Provisions Value of Supply Careers Contact Us

HIGH VALUE TRANSACTIONS THAT COULD BE INQUIRED by the income tax department

In recent years, it is crucial to remain vigilant as Revenue Authorities have placed increased scrutiny on numerous high-value and cash transactions. The Income Tax Department consistently monitors transactions exceeding a specified limit. Failure to report such transactions in Income Tax Returns (ITR) filing may result in a notice from tax authorities. The Income Tax Department has established a connected data flow, collaborating with various investment platforms such as banks, mutual fund houses, broker platforms, and other entities, including property registering authorities.

Highlighted here are major High Value Transactions:

Sale or purchase of property: Property registering authorities must notify tax authorities of all transactions involving Rs. 30 lakhs or more, whether through sales or purchases.
Cash deposits in Savings & Current Accounts with Banks: Banks, including Co-operative banks, are obligated to report transactions where cash deposits totaling Rs. 10 lakhs or more are made in a savings account within a financial year. The current account threshold is set at Rs. 50 lakhs.
Fixed Deposit Deposits: Banks are mandated to inform the tax department of transactions where an individual deposits Rs. 10 lakhs or more in one or more fixed deposits during a financial year.
Investment in various financial instruments such as shares, mutual funds, debentures, and bonds: Companies or institutions issuing bonds or debentures must report the receipt of Rs. 10 lakhs or more from any individual during a financial year for acquiring bonds or debentures. A similar reporting limit is established for the purchase of shares and mutual funds.
Credit Card bill payment: Any cash payment of Rs. 1 lakh or more towards credit card expenses needs to be reported to the tax department. Additionally, payments totaling Rs. 10 lakhs or more in a financial year fall under the reporting requirement.
Foreign Exchange Transactions: The income tax department must be informed of any receipts from an individual for the sale of foreign currency or expenses paid in such foreign currency, using banking cards, drafts, travellers’ cheques, or any other financial instrument with a value of Rs. 10 lakhs or more.

Therefore, it is imperative for a taxpayer to accurately disclose high-value transactions during the ITR filing process, ensuring precise calculation of the associated tax liability. Any inaccuracies or discrepancies in reporting such transactions could lead to the issuance of an Income Tax notice. The income tax department employs diverse data analysis techniques to identify individuals who fail to file income tax returns or those who underreport their income.

Curated By:

Yash Jain