The income tax department is chasing tax defaulters. The income tax department, has increased its vigilance against undeclared income. The secret weapon of the tax department, Your PAN card. The income tax department is tracking your high value transactions, using your PAN card.
How are they doing it?
During the course of your transactions, you deal with banks, NBFCs, financial institutions, life insurers, mutual fund companies and credit card companies. These Companies feed the income tax department, information on your high value transactions. After that, it is not too difficult for the income tax department to track you.
Let us take the following scenarios:
- You have deposited cash, made a demand draft (DD) or invested in a fixed deposit, aggregating INR 10 Lakhs or more, in a financial year. These are made under different accounts. Your bank will inform the tax department.
- You have purchased or sold property, worth INR 30 Lakhs or more. The property registrar will report this purchase or sale, to the income tax department.
- You (buyer) want to purchase a property, worth more than INR 50 Lakhs. You have TCS (Tax Collected at Source), charged at the rate of 1%, which is deducted and deposited with the income tax department. This amount is paid by you, (buyer) of the property. Now your high value transaction (purchase of the property worth more than INR 50 Lakhs), can easily be tracked by the income tax department.
For More Information On Income Tax
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