Noticed huge transactions by IT department

Noticed huge transactions by IT department
The Income Tax department has identified 90 lakh high value transactions without quoting PAN, the Finance Ministry said on Thursday asking tax evaders to own up and come clean on such transactions. As part of the scrutiny, I-T department will initially issue 7 lakh letters to those who have indulged in such transactions seeking their details. 

The high-value transaction trails were detected following the department’s drive to bring to book maximum amount of black money during the one-time compliance window closing on September 30. “The department has details of about 90 lakh such transactions for the period 2009-10 to 2016-17”. 

It said the tax department, with the help of in-house computer techniques, grouped such non-PAN transactions and identified 7 lakh high-risk clusters having around 14 lakh non-PAN transactions and these are being “scrutinized” by the tax department closely. 

“The department will be issuing letters to the parties of these transactions requesting them to provide their PAN number against these transactions,” the ministry said. The tax department has scrutinized the Annual Information Returns (AIR) for high value transactions which have divulged cash deposits of over Rs 10 lakh in a savings bank account, sale/purchase of immovable property valued at Rs 30 lakh or more, and many of these transactions do not have PAN linked to it. 

What I-T department will ask about

• Cash deposit of Rs 10 lakh or more without PAN 
• Property transaction of Rs 30 lakh or more without PAN 
• Why tax return was not filed for that year? 
• If return was filed, the source of the funds/investment 
• Whether tax has been paid?

Documents to show

• IT returns if filed 
• Bank accounts to show source of funds 
• Credit card statements to show payment

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