Which transactions are monitored by Income Tax Department?

The tax department is monitoring high-value cash transactions. At the same time, it is also monitoring digital transactions. It uses modern techniques to find out the relationship between income and expenses.

 

Income tax

What types of transactions are monitored?

Apart from bank statements, it also examines many data including real estate transactions and travel documents. When expenses are not matched with income, it sends notices and conducts investigations. The Income Tax Department can look at important cash transactions that may attract attention.

Savings Account: The Income Tax Department takes note of depositing large amounts of cash in bank savings accounts. If you deposit more than Rs 10 lakh in a savings account in a total year, the Income Tax Department may investigate. Action will be taken if there is no proper evidence.

Deposit Funds: You should be careful while investing cash in banks. If you deposit more than Rs 10 lakh in cash in a total year, the Income Tax Department may come under surveillance. The source of the money should be clear.

Stock Investment: When stocks, mutual funds, and bonds are purchased with cash, the Income Tax Department is informed. When cash investments exceed a certain limit, the Income Tax Department may take notice.

Credit Card: Credit card bill amounts are usually paid in the form of checks. On the other hand, when paying in cash, attention needs to be paid if you pay more than Rs 1 lakh in cash every month. If this happens repeatedly, doubts may arise regarding the way the money is coming in.

Real Estate: When buying real estate, if you pay in cash, if the amount exceeds a certain limit, proof of money may be requested. In cities, this limit is 30 lakhs. Action will be taken if there is no proper proof.