Income Tax department can send notice on these 10 transactions, check details here
Income Tax keeps an eye on these 10 transactions: Many people try to show less income while filing returns in order to save income tax. Remember, if you have shown less income and more expenditure, then the Income Tax Department will definitely send you a notice. Let us know about 10 such transactions on which the Income Tax Department keeps a close watch and sends a notice immediately if there is any doubt.
1- Depositing large amount without filing return
If you have shown less income in your income tax return but are depositing a large amount in the bank, then you may get a notice.
2- Heavy spending through credit card
If you spend more money than your income through credit card in a year, then the department can ask where did you get so much money from. You will have to tell them the reason for this with proof.
3- Difference between ITR and Form 26AS
If there is a difference between your ITR and Form 26AS or AIS, then you may receive a notice and an investigation may be conducted. Before filing ITR, do check these forms.
4- Buying/selling property without accounting
If you have invested a large amount in a year or bought or sold property several times, you may receive a notice from the Income Tax Department. You will have to give an account of the money received for the property and the money received from selling it to the Income Tax Department.
5- Big transaction in bank FD or savings account
If you make a huge amount of FD or if you see more money deposited in savings than required, then you can get a notice from the Income Tax Department. You will have to tell the source of that money.
6- Big earnings or investment in the stock market
A notice can also be received if you show huge investments or profits in stocks, mutual funds or IPOs. However, if you are disclosing the correct source of income, the Income Tax Department will be satisfied.
7- Hiding interest or rental income
If you have not shown FD interest or rental income in ITR, you can still get a notice. Many people inadvertently forget to show the interest income.
8- Big expenditure on foreign travel
If you spend a large amount on foreign travel and show less income, the department can inquire.
9- Not claiming TDS by giving house on rent
If you earned a lot from rent but did not show its TDS, then the Income Tax Department may suspect you.
10- Purchase of more than 2 lakhs in cash
If you have purchased something worth more than Rs 2 lakh in cash, then an alert may be triggered. Assume that after this the Income Tax Department will definitely send you a notice.
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