FAQ 1: How Income Tax Department
get to know about our transactions?
Every one want to keep distance
from Income Tax Department but due to the following expenses and investments,
which at any point of time performed by you may invite undue attention of the Income
tax Department.
|
S. No.
|
Expenses/Investments
|
Limits
|
|
1.
|
Cash Deposits in Saving Bank Account
|
Aggregating to Rs. 10 Lakhs P.a.
|
|
2.
|
Cash Deposits or withdrawals in one or more
current account.
|
Aggregating to Rs. 50 Lakhs or more
|
|
3.
|
Receipt of Cash Payment for sale of any goods/
services
|
Exceeding Rs. 2 Lakhs
|
|
4.
|
Purchase / Sale of any Immovable Property
|
Exceeding Rs. 30 Lakhs
|
|
5.
|
Making Credit Card Payments
|
More than Rs.2 Lakhs p.a.
|
|
6.
|
Investment in Shares
|
More than Rs. 1 Lakh
|
|
7.
|
Investment in RBI Bonds
|
More than Rs. 5 Lakhs
|
|
8.
|
Investment in Mutual Fund Units
|
More than Rs. 2 Lakhs
|
|
9.
|
Investment in Debentures/ Bonds
|
More than Rs. 5 Lakhs
|
|
10.
|
Investment in Gold ETF
|
More than Rs. 1 Lakh
|
FAQ 2: How does the
Income Tax Department get to know about all these activities?
The IT Department has
developed a statement of financial transactions called Annual Information
Report (AIR) through which they get to know about all the transactions entered
by you and on the basis of this report, the Income Tax Department shortlists
their targets and further sends them a notice.
FAQ 3: What do you mean
by Annual Information Report?
Annual Information
Return (now called as statement of financial transaction or reportable account)
of ‘high value financial transactions’ is required to be furnished under
section 285 BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of
‘specified transactions’ registered or recorded by them during the financial
year.
FAQ 4: Who furnished
Annual Information Return to the Income tax Department?
|
Sr. No.
|
Class of Person
|
Nature and Value of Transaction
|
|
1.
|
A Banking Company
|
a)
A Cash deposit aggregating to
Rs. 10 Lakh or more in a year in any saving account
b)
Cash deposits or withdrawals aggregating to Rs
50 lakh or more in a financial year in one or more Current Account.
|
|
2.
|
Any Institution issuing Credit Card
|
Payment made by any person
against bill raised in respect of credit card issued to that person, aggregating Rs. 2 Lakh or
more in the year
|
|
3.
|
A Trustee of a Mutual Fund
|
Receipt of Rs. 2 Lakh or
more for acquiring units of that fund.
|
|
4.
|
A Company or Institution issuing Bonds or Debenture
|
Receipt from any person of
an amount of Rs. 5 lakh or more for acquiring bonds or debentures issued.
|
|
5.
|
A Company issuing shares through public or right issue
|
Receipt from any person of
an amount of Rs. 1 lakh or more for acquiring shares issued by the company.
|
|
6.
|
Registrar or Sub- Registrar appointed under the
Registration Act
|
Purchase and sale by any
person of immovable property valued at Rs. 30 Lakh or More
|
|
7.
|
Any person being an officer of RBI
|
Receipt from any person of
an amounts aggregating to
Rs. 5 lakh or more in a year for bond issued by Reserve Bank of India
|
|
8.
|
Any other Person
|
a)
Receipt of Cash Payment exceeding Rs.2 Lacs for
sale of any goods/ services.
b)
Investment in Gold ETF worth more than Rs. 1
Lakh.
|
FAQ 5: How can I trace my
High Value Transactions reported under AIR?
The assesse can trace
his/ her high value transactions reported under AIR, in their 26AS Report under
Part E - AIR Transactions. Any
transaction of the assessee which has been categorized as a High Value
Transaction, will be reflected therein.
FAQ 6: How to avoid
receiving a notice from the IT department?
1) File
your Income Tax returns on time and correctly.
2) Always
re-check your Tax Credit with the 26AS statement.
3) Disclose
all your Taxable as well as Exempt income under the right head in the income
tax return.
