Income Tax Department: This is how the income tax department keeps an eye on your income and expenses..

It is very important to give information about income from all sources while filing an Income Tax Return. Some people deliberately hide information, but now the Income Tax Department has strengthened its system for such taxpayers. It is mandatory to provide PAN details in case of high-value transactions.

The bank in which you have your savings account, the company of your insurance plan, the AMC company from which you have bought mutual funds, and the bank from which you have taken a credit card, all give information about your every transaction to the Income Tax Department. The Income Tax Department matches this data with the information given in your ITR. The IT Department also keeps a special eye on tax evaders through Project Insight.

What is the Project Insight of the Income Tax Department?

Through Project Insight, income tax officers monitor the social media accounts of taxpayers suspected of tax evasion. If a person buys a car worth more than Rs 10 lakh, he will have to pay a one percent luxury charge. Apart from this, if the department suspects a taxpayer, his income tax return can be checked. The main purpose of this process is to find out what are the sources of income of that person, so that tax evasion can be prevented.

Income tax officer has many rights-

The officer of the Income Tax Department also has the right to seek information from the bank about the income of a taxpayer. He matches these figures with the ITR of the taxpayer. If any discrepancy is found, he issues a notice to the taxpayer and asks him to clarify the situation. Therefore, if a person thinks that he can hide some information from the Income Tax Department, then this is not possible.

The Income Tax Department keeps an eye on taxpayers using these methods-

- If you deposit, make a bank draft or make a fixed deposit of more than Rs 10 lakh in a financial year, then the bank sends its information to the Income Tax Department.

- If you buy or sell property worth more than Rs 30 lakh, then it is necessary for the property registrar to give its information to the Income Tax Department.

- If a property worth more than Rs 50 lakh is purchased, then it is necessary to collect 1 percent TCS on it. It is necessary for the buyer to deposit this money with the Income Tax Department.

- If you make a cash payment of up to Rs 1 lakh in a financial year or spend up to Rs 10 lakh by other means, then the bank issuing the credit card gives its information to the Income Tax Department.

- If you buy mutual funds, shares or debentures worth up to Rs 10 lakh in a financial year, it is mandatory for the companies involved in the transaction to inform the Income Tax Department about it.

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