The
Income Tax Department of India monitors high-value financial transactions to
curb tax evasion, ensure
transparency, and track
suspicious money movements. Certain transactions in your bank account can trigger
instant alerts, prompting scrutiny or reporting under tax laws.
📌 Transactions That Can Trigger IT Alerts
1.
High-Value Cash Depositso Deposits exceeding
₹10 lakh in a financial year can be flagged.o Repeated large deposits may also attract attention.2.
Large Cash Withdrawalso Cash withdrawals above
₹50 lakh annually from a single account may trigger scrutiny.3.
Deposits in Multiple Accountso Splitting large amounts across accounts to avoid limits (structuring) can be detected.4.
High-Value Fixed Deposits (FDs)o FDs above
₹10 lakh or multiple FDs in a short period can be reported.5.
Significant international Transferso Outward remittances exceeding
₹10 lakh in a year or transactions under
LRS (Liberalised Remittance Scheme) are monitored.6.
Transactions with Tax Deducted at Source (TDS) Mismatcho If TDS claimed in your bank account doesn’t match income tax filings, it may trigger alerts.7.
Large Payments via wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital Wallets or UPIo Payments above
₹1 lakh in a single transaction or multiple high-value transactions may be tracked.8.
Property Transactions & Loan Paymentso Payments for property purchases, high-value loan repayments, or EMIs above thresholds are reported.
📌 How to Stay Cautious
·
Maintain proper documentation for all high-value transactions.·
File Income Tax Returns (ITR) accurately and on time.·
Avoid cash transactions whenever possible; prefer
bank transfers for transparency.·
Report sources of income if your account receives large deposits unexpectedly.·
Regularly reconcile bank statements with ITR filings to avoid discrepancies.
💡 Final Thoughts
High-value transactions in bank accounts are
closely monitored by the Income Tax Department. While routine banking is safe,
unexplained or large transactions without proper documentation can trigger alerts, notices, or scrutiny. Staying cautious and maintaining
complete financial records ensures compliance and prevents unnecessary complications.
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