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To avoid income tax notice declare these high-value transaction

The income tax return filing season is near, file a return with correct details, and to avoid an income tax notice attach all your investment details. the last date to file an Income tax return is 31st December 2021. This presentation will help you to file your income tax return correctly.

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To avoid income tax notice declare these high-value transaction

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  1. To avoid income tax notice declare these high-value transactions on your ITR VINOD K AGRAWAL & ASSOCIATES, CA

  2. Taxpayers must declare some high-value transactions on their income tax return (ITR), or they risk receiving a tax notice from the Income Tax Department. • It's worth noting that the Department of Information Technology obtains data on high-value transactions done by individuals from a variety of government entities. • If you do not declare certain transactions in your ITR, the Income Tax Department may send you a notice requesting an explanation.

  3. Here are some of the high-value transactions that you should declare on your ITR:

  4. Property registrars must report to the tax authorities any investment or sale of immovable property of Rs 30 lakh or more. • So, if you are buying or selling a property worth more than Rs 30 lakh, you must disclose it to the Income Tax Department. Sale or purchase of an immovable property

  5. If a savings account holder deposits more than Rs 10 lakh in his account during a financial year, the Income Tax Department may serve an income tax notice.  • Therefore, cash deposits and withdrawals in a bank account crossing the Rs 10 lakh limit in a financial year must be revealed to the tax authorities. In current accounts, the cap is Rs 50 lakh. Making a cash deposit in a savings bank account of more than Rs 10 lakh

  6. If you used cash to invest in mutual funds, equities, bonds, or debentures, make sure the total amount of the transaction does not exceed Rs 10 lakh. • The Internal Revenue Service (IRS) has developed an Annual Information Return (AIR) account of financial transactions to help taxpayers track high-value transactions. • On this basis, tax officials will collect information on unusually high-value transactions in a given fiscal year. Cash transactions involving shares, mutual funds, debentures, and bonds

  7. If you received a sum of Rs 10 lakh or more for the sale of foreign currency in a financial year, you must record it in your ITR. • Any foreign currency credit made using a debit or credit card, as well as the issuing of traveler's checks, draughts, or other instruments, shall be reported to the I-T Department. Sale of foreign currency/ expenses in foreign exchange

  8. Making a cash payment of Rs 1 lakh or more on a credit card statement should also be disclosed. • Additionally, if a payment of Rs 10 lakh or more is made to settle credit card obligations in a financial year, the amount must be mentioned in the ITR. Using cash to pay credit card bills

  9. If you make a cash fixed deposit of more than Rs 10 lakh, you must disclose it on your ITR. • If the value of such individual deposits exceeds Rs 10 lakh, the Central Board of Direct Taxes (CBDT) has directed banks to notify them. Using cash to make a fixed deposit of more than Rs 10 lakh

  10. THANKYOU For more details please contact us through our website: https://cavkagrawal.business.site/ VINOD K AGRAWAL & ASSOCIATES, CA

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