If you fail to report high-value cash transactions that above a certain threshold in your income tax returns (ITR) filing, you will probably receive a notice from the income tax department.
The I-T Department monitors high-value cash transactions, such as share trading, mutual fund investments, bank deposits, and investments in real estate. You must alert the IT department if transaction volume exceeds the threshold limit to prevent receiving a notice.
In order to gain access to the records of the people involved in high-value transactions, the IT department has agreements in place with a number of governmental organisations and financial institutions.
The tax department sends email and SMS alerts concerning the non-disclosure of high-value transactions associated with a permanent account number as part of its e-campaign to encourage voluntary compliance and prevent issuing the notice and scrutinising taxpayers (PAN).
Cash payments made for credit card bills over one lakh rupees should be notified to the I-T department. Any high-value credit card purchase that is concealed could result in detection by the Income Tax department, which keeps track of all credit card transactions. Settlements for credit card debt that over 10 lakh in a fiscal year must be reported in the ITR.
It is required that every property registrar and sub-registrar in the nation notify the tax authorities of the sale or purchase of any moveable property costing more than 30 lakh.
The annual cash transaction cap for purchases of mutual funds, equities, bonds, or debentures shall not exceed 10 lakh.