Advance Tax Payment on Income Tax e-Campaign on High Value Transactions

These Days many Taxpayers are getting the below-mentioned message from Income Tax Portal:

Attention ________ (PAN XXXXX1234X), Income Tax Department has received information about certain high-value financial transactions relating to FY 2020-21. Please view transactions under the e-Campaign tab on Compliance Portal (CP) and remember to pay appropriate advance tax. Access CP by logging into the e-filing portal and clicking on the ‘Compliance Portal’ link under the ‘My Account’ tab – ITD.

• Taxpayers getting this message should note that they are under the radar of the Income Tax department.
• If they have done some High-Value Transaction, are it is of nature of income, Advance Tax for FY 2020-21, if not paid should be paid on the same.
• Please also note that the high-Value Transactions are coming in your form 26-AS so you need to be very careful in dealing with them.

Now, what is a High Value Transaction?

These transactions are transactions of high monetary value. They are reported to Income Tax Department when Form 61A or commonly called Statement of Financial Transaction is filed by various entities like banks, post offices, companies, etc.

How to give a reply of intimation of High-Value Transactions?

Steps of giving reply to the intimation of High-Value Transactions:

Step 1: Log in to Income Tax Portal

Step 2: Go to Compliance Tab

Step 3: Once you click on the Compliance Portal tab, you will be directed to Compliance Portal.

Once you select the transactions, You can give Individual Response or Bulk Response:

Bulk Response:

Individual Response:

What are the Significant Transactions?

Some Examples of Significant Transactions are:

1. Sale Related Transactions coming in Form GSTR-1 or GSTR-3B: If high value of Sales are reported in your GSTR-1, Advance Tax is required to be paid if you have Taxable Income.

2. TDS Deducted on income: If TDS is deducted in certain Income, then Advance Tax is required to be paid if you have Taxable Income.

3. Purchase/ Sale of Immovable Property: Registrar is required to report transactions related to Purchase/ Sale of Immovable Property of more than Rs. 30 Lakh. In case of a sale, Advance Tax is required to be paid on the capital gain income if any. In the case of Purchase, the income tax department may ask you your source of income, especially if you are a Non-Filler of ITR.

4. Purchase/ Sale of Movable Property: Transactions related to the Purchase of Luxury cars, Gold, etc. are also reported. In the future, the department may ask you the source of Income in case of purchase of such items.

5. Money Withdrawn from Bank Account: Provisions of TDS are applicable u/s 194 in case of money withdrawn from Bank Account. The same will come in the purview of your High-Value Transaction.

Click here to view TDS rate Chart

Click here to view TCS Rate Chart

6. Sale and Purchase of Goods of more than Rs. 50 Lakh will also be considered as a high-value transaction.

TDS ON PURCHASE OF GOODS EXCEEDING RS 50 LAKH

TCS ON SALE OF GOODS EXCEEDING RS 50 LAKH

7. Cash Deposit in Bank: Cash deposits aggregating to ten lakh rupees or more in a financial year, in one or more accounts are considered as High-Value Transactions.

CASH RECEIPT ABOVE RS 2 LAKHS IN INCOME TAX TREATMENT

8. Fixed Deposit in Bank:

• One or more time deposits/ Fixed Deposit of a person aggregating to ten lakh rupees or more in a financial year of a person are considered as High-Value Transactions.
• Time deposits made through renewal of another time deposit is not a High-Value Transaction.

9. Credit Card payments:

• Cash Payments of one lakh rupees or more
• Other than Cash Payments of ten lakh rupees or more

Are High-Value Transactions.

You can understand that the economy is moving towards a digital pace. In this era, it is rather very difficult to escape the income. Also, Government wants to reduce cash Transactions. So Taxpayers should be very careful at the time of doing the transaction and should pay the tax liability diligently if any.

ADVANCE TAX PAYMENT DUE DATE FOR FY 2020-21