2023-12-16 08:48:04
**Income Tax Department Utilizing Technology to Monitor Taxpayer Bank Accounts**
In today’s digital world, the Income Tax Department is leveraging technological advancements to make its operations more efficient and effective. The IT Cell of the Income Tax Department closely monitors all bank accounts held by taxpayers with the help of sophisticated software and high-end hardware, helping to stay alert in financial transactions and detect potential discrepancies.
A person who has a total of Rs. 10 lakhs deposited or withdrawn from their account in a financial year will have such details provided by the bank to the Income Tax Department. This information undergoes scrutiny, and two subsequent actions may occur based on the transactions.
First, if the income tax returns filed by the taxpayer match the cash deposits in their savings bank account and the income appearing in Form-26AS, no further action is required. However, if discrepancies are found, the department will issue an Income Tax Notice asking for details of income along with proof of income.
To avoid such situations, taxpayers are advised to avoid depositing more than Rs. 50,000 in a single transaction, not allowing any relative or friend to use their savings bank account, reconciling income tax returns with cash deposits, transacting more through e-banking, and checking Form-26AS for accurate income details.
In addition, it is recommended to keep documents of property sold, maintain a book of accounts for cash transfers, and ensure compliance with cash deposit limits in both savings and current accounts to avoid potential tax issues.
The Income Tax Department’s use of technology to monitor bank accounts underscores the importance of compliance and transparency in financial transactions. Taxpayers are encouraged to adhere to the prescribed guidelines to avoid potential legal proceedings and penalties.
For more unbiased and uncompromising news, follow Zee Tamil News on social media and download the Zee Tamil News app for news in Tamil covering various topics including politics, education, entertainment, sports, health, lifestyle, and employment.
#Income #Tax #Notice #Savings #Account #Rules #savings #account #deposit #withdraw #amount #receive #income #tax #notice