How Income Tax Department Track Your Financial Transactions 2020

If you want to know how the Income Tax Department Tracks Your Transactions then, be on this post to know the full concept.

To assess tax evasion, the Income Tax Department has stepped up its vigilance against undeclared income. At this time you need to report PAN on most of your high-value transactions. Home registrars and financial institutions where you deal with just like your lender, insurance, mutual fund company, and credit card business feed the Income Tax department together with advice regarding your large transactions.

The Income Tax department compares this information with the return filed with you personally. “Through this coverage that the Income Tax department is hoping to evaluate your general income with your investment and expenses to rate the right tax liability.

Here is a Few of the ways by the Income Tax Department is Tracking your high-value Trades:

1) Your bank will notify the Income Tax Department in case you’ve deposited money, made a demand draft or fixed deposits aggregating around $10 lakh or more at a fiscal year under different accounts.

2) The home cheque is responsible to report the sale or purchase of immovable property exceeding $30 lakh.

3) Currently, TCS (tax collected at source) in the rate of 1 percent is deducted and deposited into the Income Tax Department from the purchaser in the event of purchase of land over $50 lakh. This is only one more method of reporting the trade.

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4) If you’ve made a cash payment of $ 1 lakh on your credit card $10 lakh or more through another manner throughout the fiscal year, then your credit card company will report the transactions to the taxation authorities.

5) Purchase of stocks, debentures, and mutual funds of 10 lakh or more would need to be reported from the firms to the taxation authorities.

6) If you’re earning more than $50 lakh per year, you need to report your assets and obligations in a brand new ITR (income tax yield ) form this past year.

7) Currently, reporting of PAN is compulsory for earning any purchase of products and services of over $ 2 lakh. Additionally, a TCS (tax collected at source) was introduced on June 1 in the event of sale or purchase of any goods and services to get $ 2 lakh and much more in money.

8) According to specialists, TDS is just another method of monitoring the income of taxpayers. Banks deduct TDS if the interest on fixed deposits is greater than $10,000 annually.

9) A 1 percent luxury tax is imposed on the cost of auto priced over $10 lakh. It’ll be deducted from the vendor of the automobile and will be related to ex-showroom cost. But this additional payment may be set off from the complete tax obligation of the purchaser.

10) You are also required to submit your PAN for the below-mentioned transactions:

A) Sale or purchase of all vehicles apart from two-wheelers

C ) Opening a predetermined deposit of over $50,000

D) Payment of over $50,000 towards insurance premium

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E) Paying greater than $50,000 in money towards hotel or restaurant or overseas trip bills

F) Purchase of mutual funds, debenture, bonds worth greater than $50,000

G) Depositing money or more than $50,000 in bank

FAQs(Frequently Asked Questions)

How Income Tax Department Works?

The main duty of the IT Department would be to apply various direct taxation legislation, most significant among those being the Revenue -taxation Act, 1961, to amass earnings for the Government of India. Additionally, it enforces other financial legislation such as the Benami Transactions (Prohibition) Act, 1988, and the Black Money Act, 2015.

Which Exam is for Income Tax Officer?

SSC or Staff Selection Commission recruits for Non-Gazetted Degree jobs in the Authorities Through the Mixed Graduate Degree (CGL) Assessment.

SSC CGL is conducted annually to recruit for places like Revenue Tax Inspector, Preventive Officer, Central Excise Inspector, Statistical Investigator, Sub Inspector at CBI, etc..

How can I file my income tax return with Income Tax Form 26as?

View Tax Credit Statement (Form 26AS)

1. Logon into’e-Filing’ Portal http://www.incometaxindiaefiling.gov.in
2. Go into the Account’ menu, click’ View Type 26AS (Tax Credit)’ link.
3. Browse the disclaimer, click’ Verify’ and the user will be redirected to TDS-CPC Portal.
4. From the TDS-CPC Portal, Agree with the approval of use.