Income Tax: Taxpayers be careful, these 5 big purchases will create problems, income tax notice will come to your home immediately..

It is important to be alert before making any purchase involving a large amount, especially in the context of Income Tax Return (ITR). Many people forget to register or avoid giving information while making a big purchase, which can result in them getting an Income Tax Notice. Responding to the notice can be difficult and frustrating. There are five major such purchases: shopping with credit cards, investment in mutual funds, investing in bonds or debentures, and buying and selling property.

If you make such purchases, then you should give information about it in the Income Tax Return. If any kind of tax liability arises, it should be paid. If you fail in this, then you can get a notice from the Income Tax Department. In such a situation, let us also know in the news below what are the high-value transactions, information about which is necessary to be given, and what action can be taken if not given-

A cash deposit of more than 10 lakhs-

If you have deposited ten lakh rupees in cash in a bank within a year, then it is necessary to give information about it. If you do not do this, then be ready for a notice from the Income Tax Department. Let us tell you that the Income Tax Department gets information from banks from time to time about what kind of transaction or purchase you are making. Therefore, you cannot assume that the Income Tax Department will not know about your deposit capital.

Investment in Mutual Funds-

It is a good thing to invest in mutual funds for high returns. Also, it is a good thing to invest up to 2 lakhs or more. But it is not right that its information is not given to the tax department. You cannot even think that the tax department will not know about this investment. However, the income tax department expects the taxpayer to mention these things in the return. If you have invested 2 lakhs or more, then definitely mention it in the ITR.

Purchases from credit card-

If you make a purchase of two lakh rupees or more with a credit card, then you will have to give its information in the Income Tax Return. If you do not do this, there is a risk of getting a notice from the income tax department. The credit card is linked to the bank which is attached to your PAN, due to which the department gets information about the purchase. Therefore, it is wrong to make such purchases to save tax. It is necessary to keep this in mind while filing the return.

Purchases of bonds or debentures-

The rule on the purchase of mutual funds of 2 lakhs or more is the same rule on the purchase of bonds and debentures. The only difference is in the amount of purchase. This amount has been fixed at 5 lakhs in bonds and debentures. If a person buys a bond or debenture worth 5 lakhs in a year, he will have to inform the tax department.

Purchase of property worth more than 30 lakhs-

If you buy or sell a property worth more than Rs 30 lakh, then wealth tax will have to be paid on it. Wealth tax will have to be paid at the rate of 1 percent on the amount of more than Rs 30 lakh. If you do not inform the tax department about this or do not pay wealth tax on this property, then you can get a notice from the Income Tax Department. This property includes land, purchase of an old house, car, yacht, gold jewelry, antique or art-painting.

What to do on receiving a notice-

- Do not panic on receiving a notice, but try to understand its reason.

- Communicate online with the assessing officer. Scrutiny notice may come within 6 months of the end of the financial year, sometimes even in old cases.

- Do not forget to make multiple copies of the notice received.

- Submit the requested documents on time and also attach a cover letter.

- Make sure to take an acknowledgment letter from the assessing officer, so that it will be easy to present your case in the future.

Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.