In day to day transaction, we do some transaction which
may attract Income Tax Department to serve you a notice ask about. But we
always want to keep an Arm’s Length Distance from the Income Tax Department!
But the question here is HOW???
Here are lists of expenses/ investments, which at any
point of time performed by you may invite undue attention from the Income tax
Personnel.
1) Depositing Cash aggregating to Rs.10 Lacs p.a. in your
Savings Bank Account.
2) Making Credit Card Payments of more than Rs.2 Lacs
p.a.
3) Investment in Mutual Fund Units worth more than Rs. 2
Lacs.
4) Investment in Debentures/ Bonds, amounting more than
Rs. 5 Lacs
5) Investment in Shares worth more than Rs. 1 Lakh.
6) Investment in Gold ETF worth more than Rs. 1 Lakh.
7) Investment in RBI Bonds worth more than Rs. 5 Lacs.
8) Purchase / Sale of any Immovable Property exceeding
Rs.30 Lacs.
9) Receipt of Cash Payment exceeding Rs.2 Lacs for sale
of any goods/ services.
10) Cash deposits or withdrawals aggregating to Rs 50
lakh or more in a financial year in one or more Current Account.
The Next question which may strike us is how does the
Income tax Personnel get to know about all these activities.
To keep an eye on such high value transactions of the tax
payers, the IT Department has developed a statement of financial transactions
called Annual Information Report
(AIR).
On the basis of this AIR, the department shortlists their
targets and further sends them a notice.
What
do you mean by a Annual Information Report (AIR).
Annual Information Return (AIR) 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.
Who provides the high value transaction information to
prepare the AIR?
Banks
Mutual
Fund Companies
Companies
Issuing Bonds/ Debentures
Companies
issuing shares
Credit
Card Companies
Sub-
registrar offices on real estate deals.
How
can I trace my High Value Transactions reported under AIR?
The assessee can trace his/ her high value transactions
reported under AIR, in their 26AS Report under AIR section. Any transaction of
the assessee which has been categorized as a High Value Transaction will be
reflected therein.
In the end, one last question which everyone might have.
How to avoid receiving a notice from the IT
department?
The most important step is to file your Income Tax
returns on time and file them correctly.
Always re-check your Tax Credit with the 26AS statement.