While filing Income Tax Return, it is very important to tell about the income from every source. Many people hide some information. Now it is impossible for taxpayers who do this to escape.
The Income Tax Department has made its system foolproof. It is necessary to mention PAN with High -Value Transactions . The bank where you have your savings account, the company that has your insurance plan, the AMC company that you have bought mutual funds from and the bank that has taken a credit card, they 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 . IT Department Project also keeps a special eye on tax evaders through Insight.
What is Project Insight of Income Tax Department?
Under Project Insight, Income Tax officials also monitor social media accounts of taxpayers on suspicion of tax evasion. For example, if a person buys a car worth more than Rs 10 lakh, he has to pay a luxury charge of 1 per cent. The Income Tax Department can check the income tax return of such a person if there is any doubt. Its purpose will be to find out what are the sources of income of the person.
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. In case of discrepancy, he issues a notice to the taxpayers asking them to clarify the position. That’s why a person thinks that he can hide some information from the Income Tax Department, then it is not possible.
The Income Tax Department uses the following methods to track taxpayers:
1. If you make a deposit of more than Rs 10 lakh in a financial year, make a bank draft or make a fixed deposit in a bank, then the bank sends its information to the Income Tax Department.
2. If you buy or sell a property worth more than Rs 30 lakh, it is necessary for the property registrar to inform the income tax department.
3. If a property worth more than Rs 50 lakh is purchased, then it is necessary to collect 1% TCS on it. It is necessary for the buyer to deposit this money with the Income Tax Department.
4. If you make a cash payment of up to Rs 1 lakh or spend up to Rs 10 lakh in any other financial year, the credit card issuing bank informs the Income Tax Department.
5. If you buy mutual funds, shares or debentures up to Rs 10 lakh in a financial year, then it is necessary for the companies related to the transaction to give this information to the Income Tax Department.
