How Income Tax Department tracks the High Value Financial Transactions?

In my previous post, I have written about e-sahyog, an online facility provided by the Income Tax department for resolving mismatches with respect to Income Tax Returns.

A mismatch can happen if the data values provided by you in your Income Tax Returns do not match with the third party information on your income / investments / expenses. These third parties are banks, mutual funds, service tax department, sub-registrar of properties etc.,

In this post let us understand;

How the Income Tax department receives this information? Who provides this information to the IT department? What are the incomes that are reported to the IT department? What is the list of high value financial transactions that are reported to the department for FY 2020-21 / AY 2021-22? How to check if your high value financial transaction(s) are reported to Tax department?

List of High Value Financial Transactions reported to Income Tax Dept 

With an aim to curb black money mess and to track high value cash transactions, the government has decided to implement new reporting guidelines w.e.f November 2016, March 2017 & Aug 2020. As per the govt’s notification, all goods & services providers have to report to the IT department about high value cash transactions & cash receipts.

Under the new norms, cash receipts, purchase of shares, mutual funds, immovable property, term deposits, sale of foreign currency will have to be reported to the tax authorities in a prescribed format, which is Form 61A.

  • Immovable Property : The Registrar of properties will have to report purchase & sale of all immovable property exceeding Rs 30 Lakh to the Income Tax authorities.
  • Professionals : The Professionals will be required to inform the tax department of receipt of cash payment exceeding Rs 2 lakh for sale of any goods or services.
  • Cash Deposits in Banks : Banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more accounts (other than Current Account / Time Deposit) of a person.
  • Term Deposits in Banks :  Banks will have to report cash deposits aggregating Rs 10 lakh or more in a financial year in one or more Time Deposit accounts of a person (other than a time deposit made through renewal of another time deposit). These norms will also cover deposits and withdrawal made in Post Office Account.
  • Deposits in Current Accounts : Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more Current Account of a person will have to be reported by the bank to the I-T authorities.
  • Any cash payment of Rs 10 lakh or more in a financial year for purchase of bank drafts or pre-paid instrument issued by RBI will also be reported.
  • Credit Card Bill Payments : If you make Credit Card bill payments of more than Rs 1 Lakh p.a in cash mode (or) Rs more than Rs 10 Lakh through Cheques / NEFT transfers etc.,
  • Investments in Financial Securities : A company has to report receipt of Rs 10 lakh or more from a person/an investor in a financial year for acquiring bonds, debentures, shares or mutual funds (other than the amount received on account of transfer from one scheme to another scheme of that Mutual Fund).
  • Cash Deposits during 9th Nov to 30th Dec, 2016 : Cash deposits during the period 09th November, 2016 to 30th December, 2016 aggregating to –
    • (i) Rs 12.5 Lakh or more, in one or more current account of a person (or)
    • (ii) Rs 2.5 Lakh or more, in one or more accounts (other than a current account) of a person.

In addition to the above list, quoting your PAN is now mandatory for many financial transactions. Based on this data also the IT department can track your financial transactions.

List of Third parties who report High value Financial Transactions

  • Banks – They report High Value transactions related to deposits credit card payments.
  • Mutual Fund Companies
  • Companies issuing bonds or debentures
  • Companies issuing shares
  • Sub-Registrar offices on real-estate deals.

How do third parties report?

To keep a watch on high-value transactions by tax payers, the I-T department has developed a statement of financial transactions called Annual Information Return (AIR). On its basis, tax authorities will collect information on suspected high value transactions during a year.

(What is AIR ? – Annual Information Return (AIR) of ‘high value financial transactions’ is required to be furnished under section 285 BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year.)

Also, it is mandatory that all the specified entities (third parties) to furnish an AIR in respect of specified financial transactions registered or recorded by them during the Financial Year.

All the above third party establishments have your PAN details and they quote PAN details of all the high value financial transactions recorded by them in AIR. They submit AIR to the income tax authority.

In which report can I trace the High Value Financial Transactions?

You can check your Form 26AS under AIR section if any investment or expense has been categorized as a high value transaction. You can find high value financial transaction details under PART-E of your Form 26AS. Click here to access your Form 26AS.

For example – In the below image you can find that Just Dial company has filed AIR with the IT department indicating that the concerned Tax Assessee has purchased their equity shares worth more than Rs 1 Lakh during the Financial Year.

PART E of Form 26AS reports high value financial transactions recorded under AIR pic

(Form-26AS gives you all the details of Tax credits. It is a form which indicates that the tax that has been deducted and has also been deposited with the Govt.) (Pic Courtesy –

New Form 26AS | New Format w.e.f 1st June 2020

The Central Govt has recently notified the changes to Form 26AS. Your tax passbook, i.e., Form 26AS, will now come with a new format, effective from 1st June, 2020.

Form 26AS will also have information about ‘Specified Financial Transactions‘ such as Stocks you have bought or sold, real estate transactions, payment details of credit card bills etc.

Latest Article (Aug 2020) : All you need to know about New Form 26AS | Annual Information Statement

Newly Proposed Transactions under SFT & Form 26AS

The below newly proposed transactions (on 13-Aug-2020) would now be reflected in an individual’s tax account statement;

How to respond to the notices related to Non-Pan Transactions online?

In case if the Tax department finds discrepancies related to your high value transactions Vs your income tax return (or) if you have not quoted your PAN where it is required then they can issue non-PAN transaction related notices to you.

The notice contains details of the high value transaction and requests you to disclose if you own such transactions. The notice contains unique Transaction Sequence number (TSN) based on which you can respond to the non-PAN transaction notice online, on e-filing web-portal.

Below points give you information on ‘how to check non-pan transaction related notice and how to reply to such notices online’;

  • Visit and login to e-filing portal.
  • Click on ‘Compliance’ menu option.
  • Click on ‘Non-PAN transaction’ option.high-value-non-pan-transactions-tax-notice-online-pic
  • Key in your TSN (Transaction sequence number) in the ‘text box’ and click on ‘search’. You can view the details related to your high-value non-pan
  • Click on ‘submit to view further details’ button.
  • Based on the type of your transaction, you can find few options to choose from. For example, if the non-pan transaction is related to say mutual fund transactions then you can find options as below;
    • Purchase of Mutual Fund is out of sources disclosed in the Income Tax Return.
    • Part of the purchase of Mutual Fund is out of sources disclosed in the Income Tax Return.
    • No such transaction was conducted.
    • Want to avail the benefit of Income Disclosure Scheme, 2016.
    • More time needed to submit response.
  • You have to select one of the listed options and click on ‘submit’ button.
  • You can view your response(s) by visiting ‘view response to non-pan transactions’ link under ‘Compliance’ menu option. You also have the option to revise your response.view-reponse-to-non-pan-financial-transactions-online-efiling-portal-pic

How to reply to the notices related to High Value Cash Transactions online?

If substantial high value Cash transactions have been done in your Bank accounts, the IT dept may issue Compliance notice to you. You can respond to this notice online as below;

  • Visit and login to e-filing portal.
  • Click on ‘Compliance’ menu option.
  • Click on ‘Accounts with Cash Transactions.high-value-cash-transaction-in-bank-accounts-income-tax-notice-for-bank-accounts-with-cash-transactions-pic
  • The list of Bank Accounts with substantial Cash Transactions as communicated to you in the notice will get displayed on the screen. (Financial year – Bank Name – Account number – Response, will be displayed)
  • You can click on ‘Submit’ button to provide your response.
  • You have to select any one of the following options while submitting the response;
    • Transactions in the account are considered in IT Return.
    • Transactions in the account are considered in IT Return of another Account holder (joint-account).
    • Transactions in the account are not considered in IT Return.
    • Transactions in the account are partly considered in IT Return.
    • Transactions in the account are not taxable or exempt (ex- Agricultural income)
    • No relation with the Account.
  • You also have the option to ‘revise’ your response after submitting it (if required).

Also, if you have made Cash deposits during 9th Nov, 2016 to 30th Dec, 2016, it is advisable to check the Compliance Section of your Income Tax e-Filing account.

If cash deposits are not in line with Tax-payer profile, such data is shown under Compliance section and concerned individual has to submit his/her response to such discrepancies.

1 – Visit Income Tax e-Filing Portal.
2 – Login with your credentials
3 – Click on Compliance menu option
4 – Select ‘Cash Transactions 2016‘ optionIncome Tax dept Operation Clean money SMS Email Cash deposit 2016 Nov Dec Compliance notice

Ideally, you should see ‘No Records found’. As per the IT dept, the cash deposits information on the online portal is dynamic and will be updated on receipt of new information, response and data analytics. So, keep checking the compliance section once in a while over the next few weeks. (Post updated on 04-Feb-2017)

You may also receive an Email / SMS (if registered on e-Filing portal) from the dept, regarding Compliance notice (if any).

How to avoid receiving Income Tax notices on High Value Financial Transactions?

According to the Income Tax Authorities, transactions worth around Rs 12,000 crore form part of the Suspicious Transaction Report (STR) 2014-15, which is under probe.

It is often observed that many tax Assessees try to avoid showing their sources of income or tend to show less income in ITR to reduce their income tax liability. But, they do not know the fact that the IT dept might have complete knowledge about their financial transactions.

Therefore, it is better to declare all your sources of income and investments properly while filing your income tax return. Else, it may lead to adverse consequences.

Below are few tips to avoid getting tax notices on high value financial transactions;

  • It is always better to file your ITR before the due date.
  • Cross check all the TDS entries in your From 26AS. You may repeat this exercise once in a quarter.
  • Check your Form 26AS if any transactions are reported under AIR section.
  • Keep your PAN details up to date.
  • Disclose the entire and correct income earned by you during the FY in your ITR.
  • Keep a record of all your high value Financial transactions, investments & expenses

Continue reading :

  1. AY 2020-21 Income Tax Return Filing Tips | Which ITR Form should you file?
  2. Gold Investments Tax Treatment in India | Taxation rules on Gains from Selling Gold
  3. Income Tax Deductions List FY 2020-21 | New Vs Old Tax Regime AY 2021-22

(Image courtesy of Ppiboon at

About The Author

  • Kshitij Uttarwar says:

    Hi Sreekanth,
    Nice article. got one query.
    Me & my wife both are working and filling ITR from last 12 years. If we both withdraw 20 lacs each from our accounts and deposit back same 40 lacs after 4-5 years ,will there be any TDS, tax implications or IT notice ?

    Thanks in advance.

  • Nisha says:

    Nice article.

    I have a query. I was working abroad till Nov 2018 (3 years) and I have deposited above 10 lakh in my NRI account. I haven’t closed my NRI account when I moved back to India. I have to file my ITR for AY 2020-21 as I am currently working in an Indian institute from April 2019. My form 26AS shows SFT- 005 in part E with a remark “O” (for overbooked). What should I do to submit my ITR? I will be moving abroad again within a couple of months so I can’t close my NRI account now. Is it okay if I show the interest I received in the ITR during the financial year and pay the tax? Anything else I should do in this regard?

    I would deeply appreciate your comment in this regard. Thank you.

  • Anas says:

    Hello sir, good day
    I am a marine engineer completed my nri status till 2018.But i have never filed ITR After that i have not joined my job till now.
    In December 2018 i transferred 30lakhs INR to Turkey for purchase of property, but i could not buy apartment and thus the money was returned back to my nre account in February 2019 amounting to 42500 USD.
    Now my PAN is flagged and i have received a message from IT DEPARTMENT

    Dear A*** – Income Tax Department has received information about high value transactions relating to XXXXX6953X in FY 2018-19. However, as per records available, ITR for AY 2019-20 has not been filed. Please file your ITR by 30.9.2020. You can view transaction details and submit online response under e-Campaign tab on Compliance Portal – ITD

    what is the step that i have to take?
    As presently i am a resident indian because i have not been on ship since may 2018.
    Kindly guide

  • GGK says:

    I could see NRE FD renewed with term and new NRE FDs under SFT in Form 26AS. Is NRE deposits going to be reported. How this will have to be treated in ITR


    • Sreekanth Reddy says:

      Dear GGK,
      Yes, I think such Deposits (high value) will get reported under new Form 26AS Format.
      Read : All you need to know about New Form 26AS | Annual Information Statement

      As per Section 10(4)(ii), interest income earned on NRE account is exempt from tax if account holder is treated as a person resident outside India under Foreign Exchange Management Act (FEMA). Thus, taxability of interest earned on NRE FD account would depend on residential status of account holder under FEMA. Such interest would be exempt if account holder is a person resident outside India and taxable if he is a person resident in India in accordance with the provisions of FEMA.

  • SAURABH says:


  • Dushyant says:


    I frequently invest and withdraw in liquid fund MF AMC . Therefore total turnover becomes more than 10 Lacs . However total investment at any of the year is never above 10 Lacs .will it still be mentioned in MF AMC annual information report to tax authorities.

    Secondly this limit of 10 Lacs is per scheme or total including all scheme.

    Pls suggest

    D. K upadhyay

  • Kavitha says:

    Sir I have filed it return for Fy 2018 19 for rs. 3 lakhs and fy 2017 18 for rs.3.5 lakhs. I have withdrawn salary from my salary account every month and iam giving to my mom for the last 3 years. If I deposit cash of rs. 5 lakhs whether I will get any notice from income tax department

  • Barjesh Kumar says:

    My mother has a saving ac in Punjab & sindh bank in our village. She wanted to open a ladies suits shop & withdrew rs 3.5 lakh (total balance) in 2018 and kept the cash at home .. she could not open the shop and 3.5 lakh cash was with her for 1.5 year. Now she wants to deposit back this cash to bank account again.. can she deposit it in one go .. what is the right procedure?

    • Sreekanth Reddy says:

      Dear Barjesh,
      If this money has been property accounted for.. there should not be any issue in re-depositing it.
      Advisable to deposit in 2 to 4 installments back in to her savings account.

  • Abi says:

    Dear srikant
    My mon,’s brother(NRI) wants to transfer a big amount to my mom’s account what shall we do regarding this

  • venkat says:

    hi srikanth
    i want to send 40,00,000 to my own brother in america thru bank, will he face any problems for getting funds in to his account or else he has to pay any tax on that money

  • Sohil Chawla says:

    Hi Sreekant, please help with this query. My relative from US is here to sell her property, unfortunately, she does not have a PAN Card. SO can I take that amount approx 60 Lacs in my account and then transfer to her US account? Is it illegal?

    • Sreekanth Reddy says:

      Dear Sohail,
      May I know if she is an NRI?

      Kindly note that it is compulsory to have PAN card while buying or selling a flat. However, it is not mandatory for an NRI / PIO to have a PAN for entering into a property transaction.

      But, PAN is required to repatriate the sale proceeds of the property.

      If you are not a Party to the deal, suggest you to avoid accepting the proceeds into your account. Kindly consult a CA.

  • Raj says:

    Very informative article,
    Have a query,

    Why is the refund process so late for 2018-19? My E-verification was accepted on July 10th 2018 and not yet processed.I still see the status as E-verification accepted.

    Can you pls tell me if there is anything I need to check?


    • Sreekanth Reddy says:

      Dear Raj,
      In my case as well (ITR-3), the Tax return was filed in July, got the Notification that it has been processed in this month (Feb), it is a No-Refund case though.

      Looks like the IT dept has been slow this AY in processing the ITRs. But, generally they process Refund cases faster comparatively, as they have to pay interest on refunds.

      Kindly check if your registered email-Id inbox, in case, you have received any intimation..

      • Raj says:

        Thanks for the reply, btw did you get the reply that the ITR is prossesed? This month? Or E-verification accepted this month? And I didn’t get any intimation as of now..don’t know if I should wait..fingers crossed

        • Sreekanth Reddy says:

          Dear Raj,
          I have received the Intimation email/SMS that ITR has been processed. And after few days, the status of ITR on e-filing portal has been changed to ‘ITR processing completed’. All this happened in this month (feb).

          • Raj says:

            Ok thanks again for the reply.. highly appreciate your time and quick responses..


          • Raj says:

            Hi, just to update that still waiting for the refund, is there anything else I should wait for or is there any more process? I thought that the refund is followed by e-verification acceptance..atleast I should get some status other than e-verification accepted..or would there be any error in my filings?

          • Sreekanth Reddy says:

            Dear Raj,
            If there is any discrepancy in your return, you will get an intimation from the IT dept once your ITR gets processed.
            You may kindly wait for few more days..

            You can submit your grievance to them via e-Nivaran link..

  • Savitri says:

    I would like to know that if I find that there is high value transaction reported in form 26IA. Then what to be done to avoid getting notice. There is no column in ITR where one can mention about the high value transactions

    Also if some one receives a high value in bank account through NEFT from maternal uncle i.e., mothers brother, or from parents and the receiver is major then if the receiver invests in mutual funds net amount more than 10 Lakhs, then the income earned from the receiver will be considered the income of maternal uncle or parents as they gifted?
    Also will the amount receiver, receives a notice an IT NOTICE? If one mentions this as gift in ITR, then also IT department may try to know the details of this notice. What can be done not to get any notice?

    • Dear Savitri,
      In the said scenario, the tax assessee can disclose the Gift as an Exempt income under the Exempt income section of Income Tax Return.
      Yes, even after disclosing it, the IT dept can still issue the notice to know more details of the transaction..

  • pramesh kesharwani says:

    Hi, I want to purchase a property on my name which is 35 lakh for that i have 15 lakh from my job savings and my friend helps me for the rest amount 20 lakh by cheque/ online transfer just to avoid interest on loan. Please suggest if there is any tax liability on this 20 lakh on my savings account, and the way how can i exempt from tax liability. i wish to pay him with monthly installments of 20000 per month.

    Please suggest

  • Vai says:

    Hi Sreekanth,

    You have posted an excellent and very well written article.
    Can you please summaries below points on bank transactions for me?

    Without being Reported to tax authorities –

    1. How much amount one can DEPOSIT in his Savings account, by Cash, in a Financial Year?

    2. How much amount one can DEPOSIT in his Savings account, by Cheque / Online Transfer, in a Financial Year?

    3. How much amount one can WITHDRAW from his Savings account, by Cash, in a Financial Year?

    4. How much amount one can WITHDRAW from his Savings account, by Cheque / Online Bank Transfer, in a Financial Year?

    5. What is the Daily limit on Cash DEPOSIT in a Savings Account?

    6. What is the Daily limit on Cash WITHDRAWAL from a Savings Account?

    7. What is the Maximum amount of Fixed / Term Deposit (FD) one can create cumulatively in a Financial Year?

    Though you have already answered some of the questions in the post, but please summarize it for once and all. Thank you again.

    • Sreekanth Reddy says:

      Dear Vai,
      1 – Upto Rs 2 Lakhs.
      But do note that the applicable penalty shall however not be levied if the person proves that there were good and sufficient reasons for such contravention. (if cash transactions are above Rs 2 Lakh.)

      Kindly read : Rs 2 Lakh Cash Transaction Limit w.e.f 01-Apr-2017 | Details & Examples
      2 – No threshold limit
      3 – No threshold limit
      4 – No threshold limit
      5 – No threshold limit but can be subject to point 1 and bank may ask for documentary evidence.
      6 – No threshold limit but banks may have their own internal limitations.
      7 – No threshold limit

      • Vai says:

        Hi Srikanth,
        Thank you again. Sorry, but your responses confused me a bit.

        Point # 1 & 3: I asked “How much amount one can DEPOSIT in his Savings account, by Cash, in a Financial Year?”. You mentioned it is up to Rs. 2 Lakhs. However, based on the article (link you shared), that limit is for a single day or event/occasion. It is not for entire financial year. As per my knowledge the limit is “10 Lakhs” in a year (whether its cash, cheque and online mode), over and above which the banks/financial institutes reports that account to IT Dept. I am not sure if they do the same for WITHDRAWAL of 10 Lakhs and above from same savings account.

        Point # 2: I agree with you.
        Point # 4: I agree with you.
        Point # 5: I agree with you.

        Point # 6: I am not sure. Its bit weird that they put restrictions on deposit of cash above Rs 2 Lakhs, but allows withdrawal above it, without any constraint.

        Point # 7: Again the limit is “10 Lakhs” for FDs cumulatively by the account holder in a Financial year, over and above which they are reported by banks/financial institutes to IT Dept. and are reflected as AIR transactions in Form 26AS.

        Please confirm my understandings. Sorry, I had gone outstation and could not respond you early.

        • Sreekanth Reddy says:

          Dear Vai,
          I have provided my answers from banking customer viewpoint and not on AIR (banker’s compliance).

          How much amount one can DEPOSIT in his Savings account, by Cash, in a Financial Year? – I can deposit any amount of cash if I have genuine documentary evidence. But, the bank may report the high value transactions to the IT dept. Both are two different things. Hope you get my point!

  • Sona says:

    Sir , I got a notice from Citibank on closure of my account in 30 days for which they have not given me any reason. I have around 10 lakh in my account which I have earned and save s from my previous jobs and also paid tax also. Currently I m not working after marraige. So now if I transfer my own money to my other account , would it come under tax scrutiny or I need to answer ITD queries on the same. Please help.

    • Sreekanth Reddy says:

      Dear Sona,
      As the corpus is from your earned income, there is nothing to worry about..
      Suggest you to transfer the funds from Citi to your other bank account through Cheque or Net banking mode. Keep the bank statements of both accounts after the transfer for your future reference.


    Sir I am Salary person and there is income tax refund of Rs 25k . for crediting income tax refund i give other bank details which is non operating from last 3 years.

    can bank ask the question to me when i withdrawal the same refund ?

  • Ujjal Malakar says:

    Hello my name is Ujjal Malakar I am from Tripura 3 day ago I got a message on my airtel number that my airtel number has won 5 crore 60 lakh Rupees from England Gulf PLC they ask for my name and phone number and I gave them then they send me a mail to clam my award by filling my details my bank details and everything and I gave them and after that they call me that they came to India to transfer my money and they went to RBI and a call from RBI came. And then RBI tell me to gave Rs 25000. To a account and that account was a personal account. And I gave them and that money was the fee charge they tell me and after that they tell me that the amount is so large that In come tax department has put a stop and they tell me that I have to pay the tax before transferring the amount to my account and they gave me a personal account and by they what I no is in come tax department has own account then why they tell me this I want to clariphy that please tell me

  • M.S Sudarsanam says:

    Thanks sreekanth garu.

  • M.S Sudarsanam says:

    Dear Sreekant garu -Kindly advise :
    My wife got a notice from IT dept regarding high value transaction carried out during 2014-15. As she is a housewife and doesn’t have any regular source of income she is not filing any returns.
    The high value transaction ie deposit above 10 lakhs is from her parental side upon sale of ancestral property.
    Pl advise how to reply to IT department

  • Bala says:

    I heard that state government or central government employee can not allowed to trade or invest in equity/share market.can this is true?

  • Bala says:

    Dear Reddy sir I have a query: I planning to sell my flat to a buyer & this buyer gives me total amount by cheque but he wants to register this flat on his relatives name.
    So can this transaction creates any problem for me in future as I received cheque from person A and flat transferred​ to person B.

  • Syed says:

    Dear Sreekanth,

    Your advices and suggestions are very helpful. Keep up the good work and thanks for sharing your expertise.

    My Q: I gave advance for buying a land for 18 lakh rupees in Oct 2015 through a single cheque and the deal did not go through but the amount remained with the seller. On asking for return, it took him almost till now. Now he is ready to return it again in form of cheque. I am an IT guy, I have all my earnings through salary either in USA or in India.
    1. Will I have any complications with income tax folks if I take a single cheque of 18 lac and deposit it in my account?
    2. Should I ask him for multiple cheques? If yes, what denominations?
    3. Should I ask him to keep the cheques name blank and then I can deposit in multiple accounts and then transfer it?

    Thanks for your help in advance.

    • Dear Syed,
      1 & 2 – As both the transactions are through Cheque modes, there should not be any issues. Keep a copy of Sale agreement for future reference. Even if you get a compliance notice, you can justify this..
      3 – All accounts are now linked with PAN.

  • ssailesh says:


    I was NRI until 1.5 yrs ago. since i returned to India my income has been only from the rent of 2nd property.

    1. My credit card expenses has been around Rs. 2 lac. as against income of Rs 5 lac.
    2. I have made few overseas trips for new job. some paid by employer and some by my personal savings.
    Are the above scenario questionable by the IT man?
    Pl adv. Tks

    • Dear ssailesh,
      Looks like your purchases are genuine.
      Even if you get a compliance notice, you can always justify your stand by responding to notice and also by producing copy of bills/travel related docs (if required)

  • Harsh says:

    This is unique and in-depth information you are sharing related to the tracking of a financial transaction by the income tax department.Kindly check our portal which is a portal for filing the income tax returns online.It is a unique technology-driven platform for filing income tax returns online.

  • Prakash Chandra chaurasiya says:


    I have 6 credit cards with 25 lakh limit. And my friends doing online retailing business. my friend used my cards and earn profit to buy goods from dealers and sale it online and he pay some fixed interest in every month to me and every month some time he pay my credit card bill payment. some time he transfer online money to me for pay credit card bill payment. And from earning interest from my friends side i have paid INCOME TAX on these income timely to tax department online.

    Now we have convert all credit cards outstanding in emi. and paying timely.

    There is any issue.

  • Divesh says:

    Dear Sreekanth,
    First of all, I want to say that I really appreciate the valuable information you share.
    I have some queries and I hope you would help me.

    1. I am a educational blogger and earn 12-13 lakh a year by sell study material through my site. All this amount comes to my current account through PayPal. But I don’t withdraw or spend money from current account directly. Instead I transfer money to my saving account and pay to people (business as well as personal expenses) from there. So the saving accounts also has a transaction of 12-13 lakh in a year. Is it a bad practice snd can it cause any problem?

    2. I am still confused whether selling study material (eBooks and videos) will be considered sell or service. I have registered for service tax but have been filing zero return as I saw that service provided to foreign clients doesn’t attract service tax. More than 95% of my customers are from other countries. In that situation what taxes am I liable to?

    3. I don’t keep any separate record of income and expenses (most of which are through bank so they are there in the statement). Do I need to keep any separate books of accounts? If yes, how should I keep them? I pay rent, vehicle expenses and also to service providers and most of the time I don’t get any specific receipt. How do I keep record of these expense payments?

    I know it’s too many questions but I have asked these questions to so many people and no one has given satisfactory answers. I would really appreciate if you could help me. Thank you.

    • Dear Divesh,
      1 – Should n’t be any issue..
      2 – It may fall under selling of goods only and not a service. Service tax is not applicable in your case as I believe that you are getting the money converted through foreign exchange route. Only Income tax is applicable.
      3 – Kindly consult a CA.

      • Divesh says:

        Thanks a lot for responding.

        I understand what you mean by “getting the money converted through foreign exchange route”.
        Customers pay with their cards in Dollar through Paypal and another Payment gateway.
        And PayPal and the other payment gateway sends me the money in Rs (after conversion) through NEFT.

  • Amit Raj says:

    I want to transfer money to my grandmother savings account so she can open a fixed deposit worth Rs.2500000 in her name.

    My questions are as follows.

    I am transfering the said 2500000 through cheque and NEFT. Will it be repoted to IT department under AIR under her PAN details that she received money through cheque and neft/rtgs?

    She has never filed her IT as she is houselady. Can she file 15H in order to avoid TDS. She is 80 years old with no investments.

    Does she need to file IT return after making fixed deposit? Her only income source shall be fixed deposit having interest aprox 2.5 lakhs a year.


  • sudhakar chintaluri says:

    mr. shreekant,
    u r doing excellent job
    u r services to be treated as doc, to needy patiant. pl. keep on.

  • sushakar chintaluri says:

    mr sreekanth,

    iam psu retired person 65 years,
    i used to file my IT RETURNS promptly untill i in service.
    for the last five years (post retirement) my income sources are FIXED DEPOSITS & SHARES/MUTUALFUNDS,
    which are LESS THAN THREE LAKHS, in any year.
    so, i am not filling IT RETURNS (<3 laks) for last five years, thinking it may not mandetory for <3 lakhs income
    for senior citizons. MAY I RIGHT OR WORNG, pl. let me know

  • harsha says:

    dear sir,
    my father is a farmer and he had given an amount of 4 lacs to his friend by cash in aug 2013 at 24% per year and he repaid total 6 lacs through cheque transfer to my account in the aug 2015 as my father doesnot have pan card.whether i have to pay tax on it or what explanation should i have to give about the source of money.

    thanks and regards,


  • Tony says:

    Dear Sir,

    I have certain doubts about bank transactions.

    I understand cash aggregating to Rs 10 Lakh p.a. is deposited in SB A/c attract income tax. But how do i calculate the total deposited cash in my bank account? Say i deposit an outside cheque in my SB account amounting Rs.15,000 but the cheque bounces. My bank statement reads cheque deposited Cr. 15,000 and cheque return Dr.15,000 + bouncing charges. The fact is i didn’t actually got the money but my credit total of the month adds that 15,000 up with the rest which makes up a huge number.

    My doubt is, such defaults would be counted as deposits? or only those amount that were actually credited to my account.

    • Dear Tony,
      Reversal of transactions are not counted. As long as the transactions are properly accounted for, there is nothing to worry about.
      Kindly note that cheque transactions are not ‘cash’ mode transactions.

      • Tony says:

        Dear Sir,

        Thankyou for the information provided. So its only physical cash deposits.

        Sir, what about electronic/cheque mode transactions? Will those be informed to IT dept. for exceeding certain limit?

        I have a new bank account for 8 months with transactions (mostly electronic/cheque mode) exceeding 60K average. My relative informed me that i cannot file IT this financial year as my account is short of 12 months. I was told to file IT next year. Is it true?

        I am new to this whole tax thing so i am just trying to figure things out.

  • Ankit Gupta says:

    I have purchased house property in P.Y. 2015-16 for Rs. 325000 , please tell whether I have to show this in my income tax return of AY 2016-17

  • MUR says:

    Dear Sreekanth,

    I got a notice from IT saying that they received information on financial transaction/activities relating to me with Info. Code: EXC-001 “Cash transactions exceeding Rs. 10,00,000/- in a month”

    I am an NRI, holding a NRE Account in Central Bank of India. The cash transaction activities were exceeding Rs 10,00,000/- in a month for the year 2014-2015 as these cash withdrawal were relating to day to day expenses for my family, medical expenses for my family as my father being a heart, BP and sugar patient, house renovation, children education fees, Utilities bills etc.

    Could you please let me know what option i should choose while responding thru efiling?

  • Antony Vas says:

    Hello Mr. Srikanth, Nice and informative article. I would like to know,
    1. if my Fixed Deposit interest earning for the financial year is more than 10 Lacs, do i be liable to pay service tax?
    2. If the building and lodging rent income and FD interest Income is more than 30 Lacs, What is the mode of Tax payment? What are the parameters i can show to reduce my tax payment ? Such as Yearly Expenses , LIC and what else?
    3. Is the Tax slabs calculated after deducting the expenses from the total income of the financial year or the Tax slabs are directly calculated of the Total Income?

    Thanks. Would appreciate your response.

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