While filing income tax return, the taxpayer should ensure that he has mentioned all the income in it. Apart from the salary certificate (Form-16) of the employer, the Income Tax Department has complete information about the income of the taxpayers from other sources. These include ‘Annual Information Return’ and ‘Specified Financial Return’ of banks and financial institutions. Therefore, if you hide any source of income, there is every possibility that you may not get success and may have to face the notice of Income Tax Department.
In fact, the Income Tax Department has most of the information related to every major transaction of every taxpayer. As soon as the taxpayer provides the details related to income, the portal of Income Tax Department collates all those information with the information available with the department. According to CA Abhay Sharma, if any difference is found in this, then the department can issue a notice and inquire.
Income tax department has this information
1. Cash deposits of Rs 10 lakh or more in a financial year in a bank or post office savings account.
2. Credit Card Bill Payment:
- Credit card bill payment of Rs 2 lakh or more in a financial year.
- Credit card bill payment in cash of Rs 1 lakh or more in a financial year.
3. Investment in mutual funds of Rs 2 lakh or more in a financial year.
4. Investment in bonds or debentures of Rs 5 lakh or more in a financial year.
5. Investments made in share-IPO of Rs 1 lakh or more.
6. Purchase of fixed assets worth Rs.30 lakhs or more.
7. Capital income from the sale of listed securities or mutual funds.
8. Income from dividend received from companies.
9. Income from interest on deposits with banks or other financial institutions.
10. Purchase of foreign exchange of 10 lakhs or more in a financial year.
11. Cash purchase of any article above Rs.2 lakh.
12. Bank Demand Drafts / Pay Orders / Bankers Cheques drawn in cash of Rs 10 lakh or more in a financial year.
Keep these in mind before filing ITR
1. All income shown in Form 26AS has been shown in the return.
2. The TDS figure of TDS certificates and Form 26AS has been reconciled.
3. Capital gains arising from sale of property, jewellery, paintings etc. have been mentioned.
4. Full exemption has been taken for the eligible investments made in the financial year.
5. Dividend income is now taxable. Such income has been shown in other sources income.
6. Exempt income ie tax-free income information has been given.
