10 transactions that the Income Tax Department always monitors! Any mistakes will result in an immediate notice..

The Income Tax Department not only monitors your salary or business income, but also closely monitors your banking transactions. Certain transactions, from large cash deposits, fixed deposits, credit card bill payments, to property purchases, are immediately reported to the income tax system. This reporting is done under the Statement of Financial Transactions (SFT), which is used by banks, NBFCs, mutual fund houses, jewelry sellers, and even travel agencies. If expenses or transactions do not match your declared income, the Income Tax Department may send you a notice.

Large Cash Deposits in a Bank Account
If you deposit more than ₹10 lakh in cash into your savings account annually, the bank reports it to the Income Tax Department. The purpose of this is to understand the source of this large amount. If the source is unclear, the likelihood of an investigation increases.

Large Cash Investments in Fixed Deposits
If you deposit cash of ₹10 lakh or more in a Fixed Deposit, it is considered a high-value transaction, and the information reaches the Income Tax Department directly. This helps monitor cash investments and black money.

Large Credit Card Bill Payments
If a person pays more than ₹10 lakh in installments, bank transfers, or more than ₹1 lakh in cash on their credit card bill in a year, it is recorded in the system. The Income Tax Department then matches the expenses and income.

Purchase of Expensive Jewelry
If you purchase jewelry worth more than ₹2 lakh, providing a PAN is mandatory. This data goes directly to the Income Tax system to prevent black money investments in gold and silver.

High-Value Trading in the Stock Market
If you invest or sell more than ₹10 lakh in shares, bonds, or mutual funds in a year, it is directly reported. This helps track capital gains tax and income.

Purchasing and Selling Expensive Property
Any purchase or sale of property worth more than ₹30 lakh is reported to the Income Tax Department. This aims to prevent black money in real estate.

Purchasing Property in Cash
If you pay a large sum of cash for a property, it is immediately considered a high-risk transaction. The Income Tax Department may even be alerted before the registration.

High-Value Deposits in Lockers
Buying jewelry, gold, or other expensive assets and storing them in a locker also creates a record. This helps track large investments and their source.

Large Expenses on Foreign Travel
If someone spends a large amount on an international trip or travel package, the travel agency or bank reports this information. This is where the expenses are matched against your income.

Digital Business Transactions
If a merchant makes a large transaction through UPI, bank transfer, or online payment, it is reflected in the income tax system for business income verification.

Keep this in mind:
The purpose of all these rules is not to harass people, but to curb tax evasion, anonymous transactions, and black money. If income is declared correctly and transactions are transparent, there is no need to fear any notice.

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