Mostly, any deposit or payment (single or aggregate) above Rs 10 lakh needs to be declared, otherwise an unwelcome notice from the I-T Department is on the cards.
Income tax returns filing can be a stressful activity for most of us. Something that many individuals may not be aware of is that they need to declare certain high-value transactions in their ITR filings — or a notice from the Income Tax Department will land in their inbox. Here are the high-value transactions that you need to declare in your ITR filings before July 31, 2022.
Bank account deposits
Any withdrawal or deposit of cash of value above Rs 10 lakh to any savings account needs to be disclosed to the IT Department. Whether the transaction is of Rs 10 lakh in aggregate in the financial year or a single transaction, the same needs to be added to your income tax filings. The threshold for transactions is set at Rs 50 lakh for current accounts.
Cash deposits to FDs
According to the Central Board of Direct Taxes (CBDT), an individual making one or more time deposits of more than Rs 10 lakh or more in aggregate needs to report the same in their tax filing.
Credit card bills
The IT Department also monitors all credit card transactions. Single credit card bill payments of Rs 1 lakh or more and aggregate payments for settling credit card bills of Rs 10 lakh or more through the financial year need to be disclosed to the authorities.
Sale or purchase of immovable property
Individuals also need to disclose any sale or purchase of immovable property which is above Rs 30 lakh in value. Property registrars across India will report any transaction in value higher than Rs 30 lakh to the tax authorities.
Shares, mutual funds, debentures and bonds
Purchase of mutual funds, stocks, bonds, or debentures above Rs 10 lakh in value in a financial year needs to be disclosed to the tax authorities as the issuer of the stocks, bonds, debentures and mutual funds are required to send receipts of individuals making purchases worth more than Rs 10 lakh to the tax authorities.
The sale of any foreign currency of above Rs 10 lakh also should be mandatorily mentioned during income tax returns.