Income Tax: If you are buying or selling any property, then you must know about these 6 things. Otherwise, you may get a notice from the Income Tax Department. Let’s know about these special things.
The season of Income Tax Return Filing (ITR Filing) is going on. In the return, you have to tell in which items the income is earned and where the investment has been made. If you want to get tax exemption, then you have to give information about your investment. If you do a big transaction, then you have to be careful about that too. Do the transaction, there is no problem in it.
But must give this information in the tax return. Otherwise, there will be a danger of getting a notice from the Income Tax Department. After receiving the notice, you may find it difficult to answer. If you are going to buy and sell property, then keep in mind the limit of Rs 30 lakh. Similarly, if you sell foreign currency, then it will be necessary to take care of the limit of Rs 10 lakh.
So let’s know about those 6 big transactions whose information is not given in the tax return filing, then the Income Tax Department can send you a notice. Action can be taken against you if you do not get the correct answer.
Buying and selling of real estate
If you buy or sell any immovable property, then you must follow the rules of income tax. If any immovable property is bought or sold above 30 lakhs, then you will have to inform the property registrar and sub-registrar. This information has to be registered with the property registrar of your area.
2-Sale of foreign exchange
There is a special rule for how much foreign currency can be sold in a financial year. If you get 10 lakh rupees from the sale of foreign currency in a year, then you will have to give this information to the Income Tax Department. Failure to do so may result in appropriate action.
3-Deposit amount in savings and current account
If you do a transaction of more than Rs 10 lakh in your savings account in a financial year, then the IT department will have to inform about it. Same, if there is a transaction of more than Rs 50 lakh in the current account in a year, then this information will also have to be given to the Income Tax Department. To avoid action, do take care of this rule.
4-Fixed Deposit in Bank
If you deposit more than Rs 10 lakh in cash in your fixed deposit account, then it will have to be reported to the IT department. If depositing more than Rs 10 lakh cash in one FD account or more than one FD account, the bank will have to inform the Income Tax Department. Banks fill Form 61A for this, which is a statement of financial transactions.
5-Credit card bill
If the credit card bill is paid in cash for more than Rs 1 lakh, then the information has to be given to the IT department. The Income Tax Department monitors all credit card transactions. If this information is not given then IT notice can be received. If settlement of more than Rs 10 lakh is done on the credit card bill in a financial year, then that information will also have to be given.
Investing in Shares and Bonds
Investments in mutual funds, stocks, bonds or debentures of more than Rs 10 lakh in a financial year, if made in cash, will have to be reported. Annual information return statement contains information about your every transaction.
With the help of this statement, tax officials can catch your transaction. Part E of Form 26AS contains details of all your high value transactions. Suppression of any kind of information may call for notice.
