High End Value Transactions Tracked by Income Tax Department

The transactions done by the individuals in higher denominations is tracked closely by the Income Tax Department. As a matter of legal obligation provided through Income Tax Act, 1961 – it is mandatory to report all the high value transactions in a prescribed format. If there is any mismatch in the value of these high end transactions and amount reported in the prescribed in the prescribed format, then the individual will get served with Income Tax Notice. Following is the list of High End Value Transactions that are tracked by Income Tax Department:

  1. Aggregate cash deposit of ₹10 lacs or more in a year in any savings account.
  2. Aggregate cash payment of ₹10 lacs or more in a year for purchase of Demand Draft, Pay Orders or Bankers Cheque.
  3. Aggregate cash payment of ₹10 lacs or more in a year for purchase of pre-paid instruments issued by RBI.
  4. Aggregate cash deposit aggregating to ₹50 lacs or more in a year in one or more current account of a person.
  5. Aggregate cash withdrawal of ₹50 lacs or more in a year in one or more current account of a person.
  6. One or more term deposit (other than renewal) aggregating to Rs. 10 Lakh or above.
  7. Sale or purchase of immovable property for an amount exceeding ₹30 lacs or above.
  8. Aggregate credit card payment of ₹2 Lakh or above in a year.
  9. Expenditure of foreign currency via debit card, credit card or traveller’s cheque for the amount exceeding ₹10 lacs or above in a year.
  10. Receipt of amount of ₹1 lacs or above in a year for the purchase of shares issued by the company.
  11. Receipt of amount of ₹5 lacs or above in a year for the purchase of bonds, debentures.
  12. Receipt from any person of an amount of ₹2 lacs or above for purchase of units of a Mutual Fund.
  13. Cash payment received for the amount exceeding ₹2 lacs for the sale of goods or services by professional.

Who can report High Value Transactions?
Following can report High Value Transactions:
– Banks: Private, public and co-operative banks,
– Post Master General of Post office,
– Non-Banking Financial Companies,
– Broking companies issuing shares, debenture, and mutual funds
– Credit Card companies

These parties need to file their Form 61A also called as Annual Information Return. This is mandated as per section 285 BA of Income Tax Act, 1961. This document contains information about transaction including a name of the person and PAN card number.

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