Sun. Dec 1st, 2024

365Telugu.com online news, November 13th,2024: Credit card users should be cautious with certain high-value transactions that could trigger an alert from the Income Tax Department. Here’s a guide to seven types of transactions that might lead to an income tax notice:

  1. High Spending on Foreign Travel
    Spending over ₹2 lakh on foreign travel in a year? This information is reported directly to the Income Tax Department and may attract scrutiny.
  2. Large Credit Card Expenses
    Credit card spending exceeding ₹2 lakh annually raises red flags. The Income Tax Department monitors high credit card expenses for unusual patterns.
  3. Cash Payments Over ₹1 Lakh for Credit Card Bills
    Avoid paying credit card bills in cash if the amount exceeds ₹1 lakh. Large cash payments often invite closer examination by tax authorities.
  4. Significant Investments in Mutual Funds and Stocks
    Investing more than ₹10 lakh in mutual funds, stocks, or bonds in a single year is reported to the Income Tax Department and can prompt a review.
  5. Purchases of High-Value Property
    Purchasing property worth ₹30 lakh or more automatically alerts the tax department, as large real estate transactions are closely monitored.
  6. Large Cash Deposits in Bank Accounts
    Depositing over ₹10 lakh in cash in a bank account can trigger a notice. The department watches for high cash deposits as they may indicate unreported income.
  7. High-Value Cash Transactions in Business
    Cash business transactions over ₹50,000 are monitored, so ensure proper documentation to avoid inquiries from tax authorities.

To reduce the risk of receiving a notice, avoid these transactions where possible or maintain thorough records.

error: Content is protected !!