New Measures by Income Tax Department to Investigate Cash Transactions:

New Measures by Income Tax Department to Investigate Cash Transactions The Income Tax Department uses various data analysis techniques to identify individuals who haven't filed tax returns or have reported less income than they actually earned. They work with different government agencies to gather information about people who spend large amounts of money but don't file Income Tax Returns (ITR) or underreport their income. Latest Update The Central Board of Direct Taxes (CBDT) has directed organizations like banks, post offices, cooperatives, financial technology companies, and mutual fund companies to share detailed information about high-value transactions made during the financial year. This information must be submitted by May 31 of the following financial year. What Are High-Value Transactions? High-value transactions are large money movements that banks and other institutions must report to the Income Tax Department when they exceed certain amounts. The Income Tax Department monitors these transactions through statements called Statement of Financial Transaction (SFT) in Form 61A or reportable accounts in Form 61B. Specific organizations must provide information about certain large transactions they've recorded during the financial year by May 31 of the next financial year. This helps the Income Tax Department track people's financial activities and make sure they're paying the correct taxes. Below is a list of transactions that might cause the Income Tax Department to send you a notice, as this data is collected from the relevant reporting authorities:

Sr. No.	Transaction	Threshold (Rs)	Which authority should report?
1	Cash payment for purchasing bank draft, pay order, banker’s cheque or prepaid RBI instruments	1,000,000	Banks or co-operative society need to disclose a transaction if the amount deposited exceeds the threshold to the Director of Income Tax by filing Form 61A
2	Cash deposits in a savings bank account	1,000,000	Banks, Co-operative society, postmaster general
3	Cash deposit or withdrawal from a current account	5,000,000	Banks or co-operative society
4	Sale or purchase of an immovable property	3,000,000	The Property Registrar/Sub-registrar must report a transaction exceeding the threshold via Form 61A
5	Investments in shares, mutual funds, debentures and bonds in cash (If amount is transferred from one scheme to another, then reporting is not required)	1,000,000	Company issuing Shares, Debentures, Bonds, Mutual Fund Trustee
6	Payment of credit card bill in cash	100,000	Banks or co-operative society
7	Payment of credit card bill other than through cash	1,000,000	Banks or co-operative society
8	Sale of foreign currency Crediting FOREX card Spending in foreign currency through a debit or a credit card or through traveler’s cheque or any other instrument	1,000,000	Authorised Person under Foreign Exchange Management Act, 1999
9	Cash deposits in the fixed deposit or recurring deposit account	1,000,000	Bank, Co-operative society, Nidhi Company, NBFC