Such transactions attract special attention from the income tax (I-T) department and are mandatory to be furnished. If not, they may lead to fines, penalties or even jail term
The last date for filing the income tax return (ITR 2021-22) for 2021-22 is July 31, 2022. It is often considered a cumbersome task. However, it is mandatory to file the ITR to avoid the penalty. Even if you do not fall under any tax slab, make sure to file the return.
However, certain high-value transactions are required to be declared in the ITR. These transactions attract special attention from the income tax (I-T) department. Here is a look at such transactions:
Cash withdrawal/ deposit
Any cash deposit or withdrawal over Rs 10 lakh in any savings account must be disclosed to the I-T department. It must also be specified that such a transaction was done in aggregate or at once. The I-T department has set this limit at Rs 50 lakh for the current account.
Credit card bills
The I-T department keeps a strict eye on credit card bills. Their declaration is necessary in the return for monthly bills of Rs 1 lakh or more. If the total credit card bill goes above Rs 10 lakh for a year, it needs to be declared in the form.
Fixed deposits (FDs)
If the total FDs of an individual exceeds Rs 10 lakh, it must be declared in the ITR.
The sale of foreign currency must be disclosed in the income tax returns if it fetches Rs 10 lakhs or more to the taxpayer.
Sale/ Purchase of immovable property
If the value of the property sold/ purchased is more than Rs 30 lakhs, it must be reported to the I-T department. Such transactions will also be notified to the Central Board of Direct Taxes (CBDT) by the property registrars.
Shares/ Bonds/ Mutual funds
If the purchase of shares, stocks, mutual funds, or bonds exceeds Rs 10 lakh in value in a financial year, they must be reported to the I-T department. The issuer of such stocks, bonds and mutual funds also sends the information to CBDT about such transactions.