Income Tax Department Targets High Spenders: Watch Out for This High-Value Cash Transactions List

In recent times, certain high-value cash transactions have come on radar of the government. Thus, the Income Tax Department has been targeting high spenders to trace individuals who are trying to avoid tax payment. This article explains what exactly a high-value cash transaction is and which ones are included in the list of the income tax department.

What is a High-Value Cash Transaction?

High-value transactions are those financial dealings which are incurred in high denominations. Let’s understand them better by breaking them down into 5 categories:

1. Bank Deposits and Withdrawals

• Cash deposits or withdrawals totalling ₹10 lakhs or more in all your savings bank accounts in a financial year.
• Cash deposits totalling ₹50 lakhs or more in all your current accounts in a financial year.
• Reporting Authority: Banks and Post Offices.

2. Investments and Currency Exchange:

• Making time deposits (like Fixed Deposits), purchasing debentures or bonds, making investments in shares and Mutual Funds, or participating in a company's buy-back of shares, where the individual transaction or aggregate amount is ₹10 lakhs or more.
• Purchasing foreign currency amounting to ₹10 lakhs or more.
• Reporting Authority: Banks, Post Offices, Companies, and Mutual Fund Trustees.

3. Credit Card Payments

• Making payments from your credit card where the total bill for purchases or expenses is ₹10 lakhs or more.
• Making cash payments of ₹1 lakh or more against credit card bills.
• Reporting Authority: Banks.

4. Immovable Property Transactions:

• The purchase or sale of any immovable property (like land or a house) where the Stamp Duty Value is ₹30 lakhs or more.
• Reporting Authority: Registrars and Sub-registrars.

5. Cash Received for Goods or Services:

• Receipt of cash of ₹2 lakhs or more against the sale of goods or services.
• Reporting Authority: The person who received the cash, if they are required to undergo an audit under Section 44AB of the Income-tax Act.

Why High-Value Cash Transactions Are Watched Closely

High-value cash transactions attract close attention because they can be easily used for illegal activities. They are harder to trace compared to digital payments, making them attractive for money laundering or funding illegal operations. This scrutiny helps maintain financial transparency and integrity in the economy.

Read more: ITR Filing 2025: Your Simple Guide to Responding to Income Tax Notices

Conclusion

The government's focus on monitoring these high-value transactions highlights its commitment to a transparent financial system. For every taxpayer, understanding these specific transactions and how they are reported is vital. This awareness helps ensure compliance and avoids potential issues with the income tax authorities. 
 
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