1. Introduction
High Value transactions are transactions which are incurred in high denominations. From last few years income tax department is shaking hands with all the other related Govt. departments from which it can procure financial information and trace all the persons who are spending high amount but are not filing income tax return or are not paying taxes according to income earned. The Govt. day by day is taking several measures to reduce tax evasion and for this it is adopting technology and is bringing its operation in digital mode. There are 11 transactions which are closely monitored by income tax department. For the purpose of smooth reading let us consolidate it into 5 transactions and understand.
2. High Value Transactions
| S.NO. | HIGH VALUE TRANSACTIONS | REPORTING AUTHORITY |
| (1) | Cash deposit/ Withdrawal/ Fixed deposit made in bank account of Rs.10 lakhs or more in all bank accounts and Rs.50 lacs made in all Current accounts. | Banks/Post Office |
| (2) | Time deposits made, Purchase of Debentures or bonds, investments made in shares and Mutual Funds, buy back of shares by company, purchase of foreign currency of Rs.10 lacs or more. | Bank/Post Office/ Companies/ Mutual Fund Trustee |
| (3) | Payment made from credit card of Rs.10 lacs or more against bill raised of purchases or expenses or Rs.1 lacs paid in Cash. | Banks |
| (4) | Purchase or sale of immovable property whose Stamp Duty Value is Rs.30 lacs or more. | Registrar/Sub-registrar |
| (5) | Cash received for 2 lacs or more against sale of goods or services. | Person who has received cash and is liable for audit u/s 44AB of Income-tax Act. |
3. How Income-Tax Knows About Your High-Value Transactions-
Reporting Authorities like banks, post office, Registrars, companies are required to intimate about high value transactions to Director of Income-tax (Intelligence and Criminal Investigation) by filing Form 61A called Statement of Financial Transaction. Through this form Investigation Wing of Income-tax Department comes to know about your high-value transactions and then it checks whether such person has filed return of income or not. If return is filed whether income disclosed is true and taxes have been paid correctly or not.
4. Measures Taken By Income-Tax Department– Income-tax Deptt. is actively taking measures to trace all the high value transactions:-
1) Revised Form 26AS-For this it has revised Form No. 26AS from 01st June 2020 and PART-E of Form 26AS shows information about High Value Transaction. In earlier years income-tax notices were issued on the basis of these information. In year 2018 cases for past 8 years were reopened and notices were issued u/s 148. Also notices was issued in year 2019 to persons depositing cash above 2.5lacs during demonetization.
2) Shaking Hands With Related Department For Exchange Of DATA- Income-tax Deptt. has signed MoUs with various departments as follows-
a) Memorandum of Understanding (MoU) was signed on 21st July 2020 for exchange of data between Department of Direct tax and Deptt of Indirect tax.
b) MoU was signed on 20th July 2020 for sharing of information between Central Board of Direct Taxes (CBDT) and Ministry of Micro, Small and Medium Enterprises.
c) MoU was signed on 8th July 2020 between CBDT and Securities and Exchange Board of India (SEBI) for data exchange.
3) Launched E-Campaign To Voluntary File Returns For F.Y. 2018-19– Giving one-time opportunity to person who has not filed return for F.Y.2018-19 or has filed return but is not in line with High Value transactions. CBDT has started 11 days e-campaign from 20th July and is sending E-mails /Messages to non-filers or in whose case discrepancies is noticed to voluntary file return so that they can avoid further income-tax notices and scrutiny.
4) Mandatory To File Return Of Income-Till F.Y. 2018-19 person (other than company or firm) was required to file return if income exceeds 2.5 lacs. In Budget 2019, Hon’ble Finance Minister Smt. Nirmala Sitaraman announced that from 1st April 2019 filing of Income-tax return is necessary even if your income does not exceeds 2.5 lacs and you have entered into High Value transactions i.e. deposited Rs.1 crore in current account, expended more than 2 lacs in Foreign travel or paid above 1 lacs towards electricity expenses..
5) TDS On Cash Withdrawal-From 01st June 2020 banks and post offices are required to deduct TDS if any person withdraws cash above 20 lacs or 1 crore based on their income filing status @ 5% or 2%.
5. 0ur Comments–
All the persons who does High-Value transactions are in radar of Income-tax Departments. In maximum cases income tax notices are issued based on these High Value Transactions. So you have to keep yourself informed about all these transactions and file return accordingly. Let us bring into practice to avoid cash transactions so that income-tax notices can be avoided. Govt. is fastly moving towards digitization of its entire working system and now only good tax planning can save our taxes. Let us ensure to save taxes legally.
****
The above comments do not constitute professional advice. The Author can be reached at [email protected]. My name is CA Divya Agrawal and I am Practising Chartered Accountant. I also upload educational videos in You tube and name of my channel is FINANCIAL TREE COMPANY. My aim is to help people in improving their financial health by spreading knowledge and love. Stay Healthy and Wealthy.
Author Bio
CASH DEPOSIT IN SAVINGS ACCOUNT
Hi. I am writing this on behalf of my mother. My mother is a pensioner and she purchased one property in the year 2011 without my knowledge. That property was based upon power of attorney and full cash payment 11.50 lacs approx. Frankly speaking it was some fraudster who cheated her and sold some very bad property in very bad location in Delhi at very high price. Some how i came to know later and we could not sold the property for 10 years. Now recently again i came to know that the property was sold without my knowledge in F.Y 20-21.My mother sold the property in cash @ 8 lacs . and deposited the 6.86 lacs in her savings account . I have already filed the ITR on behalf of my mother this year but did not show the cash deposit. What should I do in this case. Should I file revised ITR and pay the tax by the way its a loss making transaction and I cannot show the property transaction. What source should I mention in the ITR. She has been filling the ITR since 6 to 7 years .Please help
I have question regarding my High value transactions . I have time deposit value for FD in E-campaign portal. I have got few concerns.
1. FD maturity amount is provided only after tax deduction with interest. Still Maturity Period is there for another 2-3 years. However When I download interest certificate , it is including the Interest amount which is accumulated on FD account which we yet to receive.
2. What should I fill in the E-campign portal whether information correct or denied.
3. Do I really need to revise my ITR ? Because during the time , FD maturity also, they deduct once again.
Attention xxxx(XXXXXvghj),The Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal and clicking on ‘Compliance Portal’ link under ‘My Account’ or ‘Compliance’ tab – ITD
I got the above message today. How to proceed further?
Attention ANILKUMAR DAYABHAI THAKAR (XXXXX7001X),The Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal and clicking on ‘Compliance Portal’ link under ‘My Account’ or ‘Compliance’ tab – ITD
Attention( BSQPK4194N),The Income Tax Department has identified high value information which does not appear to be in line with the Income Tax Return filed for Assessment Year 2020-21 (relating to FY 2019-20). Please revise ITR / submit online response under e-Campaign tab on Compliance Portal (CP). Access CP by logging into e-filing portal and clicking on ‘Compliance Portal’ link under ‘My Account’ or ‘Compliance’ tab – ITD
How to solve excess amount and how to pay tax.for exess amount
I
I also recieved a same message today for 3 high value transactions – I chekced in the income tax portal for the transactions which sums up to 90k total.
The 3 transactions consists of:
1. 71k savings account yearly interest I recieved from my 2 bank accounts
2. 19k is yearly interest amount received from FD
Now I submitted the responses saying all these are valid transactions.
But my question is -what should be my next step ?Savings yearly interest comes with tax deduction only right or not?
Can I avoid refile the ITR or how can I show something without paying any extra tax amount now ?
Could you please help me basically how should I proceed now.
Thanks,
Arnab Chanda.
I just received a msg from it authorities department has identified high-value information does nor appear in fy 19-20 please submit revised itr what can I do sir
Mere paas ek message aaya hai income tax ka usme ye likha hai iska kya matlab hai
Attention GAURAV JAIN (PAN XXXXX1578X), Income Tax Department has received information about certain high value financial transactions relating to FY 2020-21. Please view transactions under e-Campaign tab on Compliance Portal (CP) and remember to pay appropriate advance tax. Access CP by logging into e-filing portal and clicking on ‘Compliance Portal’ link under ‘My Account’ tab – ITD
From: AD-CMCPCI
Please read this article. It is based on this topic only. There are significant transaction done by you and you must pay advance tax. This message says this. Kindly refer to this link-https://taxguru.in/income-tax/advance-tax-payment-based-high-value-transactions.html
Hello
Mene picle 1 mahine me 70-80 lac ka transactions kia hai online like in net banking and through upi
Yee saare transactions ek online gambling website pe hue hai and yee bhi nhi hai ki mere pass total 70-80 lac ka profit hai profit approximately 15 lac ka hai
Too kya mere income tax ka notice aayega
Pleat help me
Deposit /withdrawl of 10 lakh would includecheque transaction also or cash only?
Dear sir मै एक काम किया था supplie ka lakin gst नहीं liye the mere account se 2 cror ka tranjuction hua hai kya hum income tax ke दायरे में आते hai
Does a person holding a “non resident” status, needs to declare salary received in “NRE” account in ITR form. If “yes” then under what section of ITR-2 should it be declared??
IF SOME ONE
TURNOVER 1.60 CR AND
CASH DEPOSIT IN CA ACCOUNT MORE THAN 75 LCKS (ANNUALY) SHOWN IN 26 AS.
LIABLE FOR AUDIT / FILE UNDER 44AD…
PLEASE ASSIST..
I transferred rs 10lac to my wife also an assesee from my retirement pf money after closing an TDR from my saving SBI account,
It is also showing in her 26as as SFT-005,She is filing itr due to a annual rental income below 2lac,will this family transaction as gift be liable to included with her regular income for tax assessment in her itr as the money was not earned by her but was my hard earned retirement emoluments and it’s TDR on my account was already taxed earlier by sbi
If an individual had deposited an amount of rs -75 lakh in bank A schedule bank and 30 lakh in bank B ….is he liable to file Return of Income?
how to include high value transaction itr forms
Sir,
I just wish to know about any extensions for filing TDS returns of 4th quarter of 2019-20? Because I had read on Google three days back for the same. But later on that news were removed how? I didn’t understand why? So I wish to confirm weather any extensions are given or not? Otherwise I know that it was 31st July 2020. Please clarify. Thanks.
If in Form 26AS , it is cited as SFT whether the Tax Payer needs to do anything?
2. If a retiree continues his Provident Fund with the Provident Fund Trust, even after retirement, while declaring the interest income for the Tax purpose, can he calculate the interest earned on the portion which has accrued after his retirement date, for when he was in service PF is not taxable.?
Hi All,
Before BJP not in power always talk about soniya gandhi,vadara, Mulayam Singh Yadav and many more for balck money.
But nothing happens so far since more than 6 year ,what income tax department doing only focus on middle class person.
8 years case can not be opened in normal course, you are wrong in fact and law both.
High value transactions much more what you have mentioned.
Mandatory to file the income tax return even if income not exceed 2.5 lakhs came in 2019 budget not in 2020 budget. You should workout before publishing article
Some information are useful e.g. MOU reg. if these are correct, as i have read only with indirect tax.
IS there any specific column in ITR-1 to file the Foreign currency purchased for education fees payment of daughter (SFT-011 in 26AS)
The Value as per The Sub-Registrar is that amount of the Value pitched up by the Registrar, even though the Sale consideration might be low, even then as per Section 50C of the Income Tax Act, the SRO Value will be picked up and Notices for non-disclosure or improper disclosure could be issued and the difference of the amounts between the SRO Value and the Sale Consideration will be added as Unexplained Investment / Income.
Multiple short term deposits, example 5Lakhs invested for 7 days each in time deposits with a bank, 20 times in a year, with a gap in between, will make it more than 10 Lakhs in a year; and attract SFT whereas the same deposit renewed will not count for SFT – Funny Logic
Good article.
Simple language.
Well done.
Most of the income tax evations are by accounting the black money by means of income from agriculture. It will be better to limit ceiling if income from agriculture say Rs. 10 lakhs per annum instead of unlimited income.
I couldn’t understand what you mean by stamp duty value in immovable property transaction?
Launched E-Compaign To Voluntary File Returns For F.Y. 2018-19.
(Instead of fy: 17-18)
::: The heading needs to be corrected.