IT Department to keep Surveillance on daily transactions of people

by amolwarankar
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New Delhi : People have to be extra careful while spending money as the income tax department is going to have strict surveillance on the daily small and medium transactions along with large transactions.

Earlier the income tax department used to look at high value transactions like spending 2 lakh rupees on credit cards, purchasing properties of more than 30 lakh rupees, deposits of more than 10 lakh rupees in the bank. However, the Income Tax Department is keeping an eye on everyday expenses.

Apart from this, the Income Tax Department has recently released its full list on which transaction it will have its eye on. Taxpayers have to be cautious, if their expenses are not matching with their income and savings. The enquiry would be made if the IT department found anything suspicious.

The list includes-

  • Education fees paid above Rs 1 lakh annually
  • Paying electricity bill over 1 lakh rupees annually
  • Property tax paid over Rs 20,000 annually
  • Hotel expenses above 20,000
  • More than 1 lakh rupees spent on purchase of white goods i.e. TV, freeze, phone
  • Health insurance premium over Rs 20,000
  • Insurance premium paid over Rs 50,000 annually
  • Business class travel in foreign and domestic flights
  • Purchase and sale of shares including demat transactions
  • Rent over 40,000 per month
  • Income tax department will also be keeping an eye on lockers in the bank.


Tax liability on selling agricultural land

Farming land does not originally come in the form of capital assets. There are some rules because of which agricultural land is not considered as capital assets. According to 2, 6, 8 kilometers, the maximum limit of population is 10 lakh and the minimum limit is 10 thousand. If your agricultural land is outside the municipal limits, then it will not be considered as a capital asset. Capital gains tax will come on the scope of capital asset and benefit of indexation.

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