Income Tax News: The season for filing income tax returns (ITRs) is currently underway. You will need to disclose in the return which items generate income and where the investments were made. You will need to provide information about your investments if you wish to receive tax exemption. You must exercise caution when making any large transactions. Proceed with the transaction; there are no issues. However, kindly include this information on your tax return.
Consequences of Non-Disclosure
If not, there’s a chance you’ll receive a notice from the Department of Income Taxation. Responding to the notice after receiving it could be expensive for you. When purchasing and selling real estate, bear in mind that the upper limit is Rs 30 lakh. Similar to this, it’s crucial to remember the Rs. 10 lakh cap if you sell foreign currency. about those six significant transactions, as the Income Tax Department may send you a notice if the information is not included in your filed tax return. If you don’t get the right response, you might face consequences.
Purchases and sales of real estate
You are required to abide by income tax regulations whether you purchase or sell any real estate. You must notify the property registrar and sub-registrar of any purchases or sales of immovable property valued at more than Rs 30 lakh. The property registrar in your area must have this information on file.
Foreign exchange sale
The maximum amount of foreign currency that can be sold in a fiscal year is governed by a unique regulation. You must report this information to the Income Tax Department if you make more than Rs 10 lakh from the sale of foreign currency in a single year. If you don’t, the right thing might happen.
Amount placed in current and savings accounts
You must notify the IT department if you make any transactions in your savings account during a fiscal year totaling more than Rs 10 lakh. Similarly, the Income Tax Department will also need to know if there are any transactions in the current account totaling more than Rs 50 lakh in a single year. Please remember this rule so as not to take any action.
Bank Fixed Deposit
You must notify the IT department if you make cash deposits into your fixed deposit account totaling more than Rs 10 lakh. The bank must notify the Income Tax Department if more than Rs 10 lakh in cash is deposited in one or more FD accounts. Banks fill out Form 61A, a statement of financial transactions, for this purpose.
Credit card bill
The IT department must be notified if a credit card bill totaling more than Rs 1 lakh is paid in cash. Credit card transactions are monitored by the Income Tax Department. IT may send a notification if this information is not provided. Information regarding any credit card bill settlements made in a financial year that total more than Rs 10 lakh must also be provided.
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