A purchase made in a large amount can put you in danger. Make such purchases but when it comes to income tax return ITR, then definitely mention it in it. Many people either forget, or avoid telling. As a result, they get notice from Income Tax. After getting the notice, it will be difficult to answer it. These 5 big purchases include shopping with credit cards, investing in mutual funds, investing in bonds or debentures and buying and selling properties.
If you make such purchases, then you should give this information in the income tax return. If any tax liability arises, it should be paid. If you fail in this, then a notice may come from the Income Tax Department. Let us know what are the high value transactions, whose information is necessary to be given and if not given, what action can be taken.
Cash deposit above 1-10 lakhs
If you have deposited Rs 10 lakh in cash in the bank within a year, then it is necessary to give this information. If you do not do this, then be ready for a notice from the tax department. On behalf of the banks, the tax department keeps getting information about what kind of transaction or purchase you are doing. Therefore, it cannot be assumed that the Income Tax Department will not know about your deposits.
2-credit card purchases
If you make a purchase of Rs 2 lakh or more with a credit card, then this information will have to be given in the ITR. Failure to do so may result in a notice from Income Tax. Your PAN will also be attached to the account of the bank with which the credit card will be linked. In such a situation, the Income Tax Department will come to know about such purchases. It is wrong to think of evading tax by making such purchases. While filing returns, keep such purchases in mind.
3-Investing in Mutual Funds
Investing in mutual funds is a good thing for high returns. It is also a good thing to invest up to 2 lakhs or more. But it is not a good thing that its information should not be given to the tax department. Can't even think that the tax department will not be aware of this investment. But the department expects the taxpayer to tell these things in the return. If you have invested 2 lakh or more, then definitely mention it in ITR.
4- Purchase of Bonds or Debentures
The same rule applies to the purchase of bonds and debentures as is applicable for purchase of mutual funds of Rs 2 lakh or more. The only difference is in the purchase amount. This amount has been kept in bonds and debentures of 5 lakhs. If a person buys a bond or debenture worth 5 lakhs in a year, then he will have to inform the tax department.
Property purchase above 5-30 lakhs
If you buy or sell a property worth more than Rs 30 lakh, then wealth tax will have to be paid on it. Wealth tax at the rate of 1% will have to be paid on the amount exceeding Rs 30 lakh. If you do not give this information to the tax department or do not pay wealth tax on this property, then the notice of Income Tax Department can be received. This property includes land, purchase of an old house, car, yacht, gold jewellery, antique or art-painting.
What to do when you get a notice
Do not get upset when you get the notice, but consider the reason for it. Keep your point online till the assessing officer. Scrutiny notice is sent within 6 months from the end of the financial year. Sometimes notice comes in old case also. Make several copies of the notice you have received. Submit the documents that have been demanded in it and also give a covering letter along with it. Ask the Assessing Officer for an acknowledgment letter for this so that you will have the facility to express your point further.
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