15 High Value Transactions traced by Income Tax department!!!!

The Income Tax department is tracking the undeclared income and on high value transactions. Also, department has made it mandatory for any person to furnish PAN in case of any high value transaction. Income Tax department gets the report of transactions of all high value made either through cash or bank. The reports of High value transactions are  known as Annual Information Report or AIR.

What is called high value transaction?

There is no definition of High Value Transaction and also it does not have to be assumed on the basis of turnover or net worth, however, threshold limit has been prescribed for the High Value Transaction. The list is as follows:-

1. Aggregate cash deposit for Rs 10 lakh or more in saving bank account.

Example, If You have two saving bank account with bank X. You have deposited Rs 6 lakh in one saving account and 5 lakh in another saving account, making it a total of Rs 11 lakh. As your total deposit exceeds Rs 10 lakh in a year, Bank X is required to report this to Income Tax department.

2. Purchase of bank drafts or pay orders in cash for Rs 10 lakh or more.

When cash for the purchase of Purchase Orders (POs) or Demand Drafts (DDs) or Bankers Cheque is made for Rs.10 lakhs or more in a year, banks are responsible to report such transactions.

3. Aggregate Fixed Deposits of Rs 10 lakh or more in a year.

Banks are required to report the cash payment made for Fixed Deposits amounting Rs 10 lakh or more in a year. However, these fixed time deposits will not include deposits made through renewal of other fixed deposit.

4. Purchase of any pre-paid instruments issued by RBI of Rs 10 lakh or more in a year.

Purchase of RBI pre-paid instruments like RBI bonds, etc. for more than Rs.10 lakhs is also categorised under High Value Transaction.

5. Cash deposit or withdrawal amounting Rs. 50 Lakh or more in one or more current account of a person in a year.

6. Cash received for amount exceeding Rs. 2 Lakh for the sale of goods or rendering of services.

7. Expenditure in foreign currency via debit card, credit card or traveler’s cheque for the amount Rs.10 Lakh or above in a year.

When any person buys or spends Foreign currency for Rs. 10 lakh or more through debit card, credit card or traveler’s cheque, then such transactions are also required to be reported.

8. Payment by credit card amounting Rs.10 Lakh or above in a year.

If Credit Card payment in an aggregate exceeds Rs. 10 lakh in a year, then the institution issuing the credit card is required to report such transaction to the Income Tax department.

9. Credit card bill paid in cash for Rs 1 lakh or more.

When credit card bill is issued to any person and that person pays the bill in cash amounting Rs 1 lakh or more, that transaction is also considered as High value transaction. 

10. Purchase or sale of immovable property having value of Rs. 30 Lakh or above.

When someone sells or purchases any immovable property having guidance value of Rs 30 lakh or more, then such transaction is also High Value Transaction. The actual price of sale or purchase is irrelevant.

11. Mutual Fund Investment in a year of Rs 10 lakh or more.

When any person purchase units of mutual fund for Rs 10 lakh or more, then such transactions are considered as high value transactions.

12. Purchase of bonds or debentures for Rs 10 lakh or more in a year.

Similarly, when any person purchase bonds or debentures for Rs 10 lakh or more, then such transactions are also considered as high value transactions.

13. Purchase of shares of company for Rs 10 lakh or more.

When anyone purchase shares of a company through the public offer or right issue amounting Rs. 10 lakh in a year, that transactions are also required to be reported to Income Tax Authorities.

14. Share buy-back from a person amounting Rs. 10 lakhs or more.

15. Cash deposit in current account above Rs 12.5 Lakh or in any bank account more than Rs. 2.5 Lakh after Note-Ban i.e period from 9th Nov, 2016 to 30th Dec, 2016.

To Avoid any legal proceeding, it is better to declare any such transaction during individual returns filing without fail.