7 Ways Income Tax Department Is Getting information About You!

7 Ways Income Tax Department Is Getting information About You!

The Income Tax Department is watching you silently! The detective camera on your action are the provisions under, The Income Tax Act under which data related to your financial transactions are reported by person with whom you transact.

Section 285BA read with Income Tax Rule 114E under which specified person are held responsible for filing Annual Information Return with the Income Tax Department. These data are then taken up on a sample basis for scrutiny selection.

Here are the seven reasons why information about your transaction will be stored in central database of income tax department. This is as per law and the same person with whom you have made transaction is compelled under I .T. Act to submit the information to department annually!

1. You have deposited Rs 10 lakhs in aggregate in a savings account with a bank.

2. Payments of Rs 2 lakhs in aggregate in a year made through your credit cards.

3. Bought Mutual Fund units for Rs 2 lakhs from a mutual fund company.

4. Invested Rs 5 lakhs in bonds or debentures issued by the company or institution.

5. Applied for shares in IPOs for Rs 1 lakhs or more.

6. Purchased or sold immovable property valued at 30 lakh rupees or more.

7. Applied for RBI bonds for 5 lakh rupees or more in a year.