Certain Individuals who had filed their Income Tax Returns (ITRs) have received mass/bulk messages from the Income Tax Department regarding high value credit repayment transactions. Read on to know what triggered this message and file your response accordingly.
The following message was received by some Individuals: —
“The Income Tax Department has identified certain information related to high value transactions, which does not appear to be in line with the Income Tax Return filed by you for the Assessment Year 2023-24 (relating to FY 2022-23).
Read Also: Income Tax Dept issues Clarification on Sending of Notices to Taxpayers who already filed ITR
You can view the information on compliance portal. Please submit your response online under e-Campaign tab on Compliance Portal or revise your ITR.
After login to the e-filing Portal (Home | Income Tax Department), please go to “Pending Actions” tab and click on “Compliance Portal”. On Compliance Portal, navigate to “e-Campaign tab” and view campaign type “High Value Transactions” to submit response.
If the information has been correctly accounted for in your ITR, you may ignore this message. Thank you, -Income Tax Department.”
The following is a compilation of transactions that various entities, including banks, government agencies, mutual fund houses, and companies, report to the Income Tax Department through the submission of Form 61A, commonly referred to as the Statement of Financial Transactions (SFT).
1. Cash deposits or withdrawals exceeding Rs. 10 lakh from a savings bank account within a fiscal year.
2. Cash deposits or withdrawals surpassing Rs. 50 lakh from a current account within a fiscal year.
3. Depositing over 10 lakh in cash into a fixed deposit account within a fiscal year.
4. Sales or purchases of immovable property exceeding 30 lakh rupees in a financial year.
5. Cash investments exceeding 10 lakh rupees in a financial year in stocks, mutual funds, debentures, and bonds.
6. Cash payments for credit card bills surpassing Rs. 1 lakh in a fiscal year.
7. Payments made for credit card debt, exceeding 10 lakh in a fiscal year, using any method other than cash.
8. Sale of foreign currency amounting to more than 10 lakh rupees in a fiscal year.
9. High-value transactions such as domestic business-class air travel, tuition or donations payments, and purchases of jewelry, white goods, paintings, marble, and electricity consumption exceeding Rs. 1 lakh in a fiscal year may prompt the Income Tax Department to issue a notice.
The Income Tax Department actively monitors substantial transactions to prevent tax evasion and the generation of unaccounted wealth. To steer clear of legal repercussions, taxpayers must adhere to the guidelines for high-value transactions. The Income Tax Compliance portal serves as a user-friendly platform, enabling taxpayers to conveniently submit their responses online, eliminating the need for a visit to the Income Tax Department’s office. By following the outlined step-by-step guide, taxpayers can effortlessly and promptly submit their responses through the compliance portal.
It’s crucial to emphasize that submitting responses via the Income Tax Compliance portal is not only a legal obligation but also a responsible act of citizenship. Taxpayers play a vital role in contributing to the nation’s economic growth and development by complying with regulations surrounding high-value transactions. Therefore, it is imperative for taxpayers to maintain a vigilant eye on their financial transactions and promptly submit responses through the compliance portal when required.
Additionally, on the Income Tax Compliance Portal, you have the convenience of accessing your Annual Information Statement, e-Campaigns, e-Proceedings, and DIN Authentication. Stay informed and compliant for a seamless tax experience.
“AIS do not provide remarks tab It provide options that need to be selected from below-mentioned list:
1. Information relates to other PAN/year
2. Information is correct
3. Information is fully not correct
4. Information is denied”, FCA Abhinav opined.
https://x.com/Abhinavaag/status/1739957320065712284?s=20
One major thing to note is that such communications do not legally fall under the ambit of “notice” under Income Tax Laws. However, due response will come handy if your matter goes to litigation.
CA Chirag Chauhan tweeted on ‘X’ —
“When you buy property it is not compulsory to file your Income Tax Returns
However, as per our experience, many individuals have received scrutiny notices in past for why they have not filed Tax returns and to know the source of funds for the year in which they purchased the property!
It’s advisable to file NIL returns which may avoid unnecessary scrutiny later”
https://x.com/CAChirag/status/1739607476658729067?s=20
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