26 Dec
Income Tax Return 2021 5 Cash Transactions That Can Get You in Trouble Find out here
Income Tax Return 2021: 5 Cash Transactions
That Can Get You in Trouble. Find out here
Navi Mumbai: In the last few
years, the Income Tax Department has become extremely vigilant about cash
transactions. Now, Indian banks and other institutions allow cash transactions
only up to a certain limit. Various experts have suggested that people report
their high-value cash transactions in their income tax returns. Any such
violation can get someone in trouble.
Currently, the income tax
department has entered into agreements with various other agencies to obtain
financial records of persons engaged in high-value transactions without
reporting to the ITR, the report said.
A separate Annual
Information Return (AIR) has been prepared by the IT department to track
taxpayers' high-value cash transactions, the report adds.
The last date for filing ITR
for the financial year 2020-21 is 31st December 2021.
Here is a list of 5 cash
transactions that can get you in trouble
Real Estate Property
When selling or buying any
real estate property worth more than Rs 30 lakh, the person must mention it in
the ITR. Information may also be disclosed by the property registrar. Taxpayers
are advised to report it in Form 26AS.
Investing in the stock market
If you are trading in the
stock market and buying/selling shares, debentures and bonds, if the value of
the cash transaction is more than Rs 10 lakh per annum, you should mention it
in your ITR.
Term Deposit (FD)
According to the Central
Board of Direct Taxes (CBDT), banks are required to report term deposits of
more than Rs 10 lakh. Individuals are also required to report it in their ITR
if they have FDs worth more than Rs 10 lakh in one or more accounts.
Credit card payment
This is a more complex area.
In the case of credit card bill payment, cash payment of more than Rs 1 lakh
has to be reported to the IT department. But if the value of the bill is more
than Rs 10 lakh, the person is required to submit the bill along with the ITR.
Savings account and current account
In the case of a savings
account, if any account is registering transactions (deposits or withdrawals)
of more than Rs. 10 lakhs per annum, the account holder is required to report
it. For current accounts, the limit is Rs 50 lakh.
Regards
Santosh Patil
Founder & Director
Alliance Tax Experts
9769201316
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