{"id":281873,"date":"2025-06-08T17:05:08","date_gmt":"2025-06-08T17:05:08","guid":{"rendered":"https:\/\/peraltafinancing.com\/accounting\/income-tax-dept-cracks-down-on-high-earners-hiding-income-monitors-big-transactions\/"},"modified":"2025-06-08T17:05:08","modified_gmt":"2025-06-08T17:05:08","slug":"income-tax-dept-cracks-down-on-high-earners-hiding-income-monitors-big-transactions","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=281873","title":{"rendered":"Income Tax Dept. Cracks Down on High Earners Hiding Income, Monitors Big Transactions"},"content":{"rendered":"


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Income Tax Dept. Cracks Down on High Earners Hiding Income, Monitors Big Transactions<\/strong><\/p>\n

The Income Tax Department<\/strong> is adopting modern techniques to keep an eye on individuals earning high incomes but hiding their income and displaying less income.<\/strong> Hence, in order to gather information regarding these individuals who spend much but do not reveal their income completely, the IT department is working with several government agencies.<\/p>\n

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Table of Content<\/p>\n

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  1. What New Change has been Adopted?<\/a><\/li>\n
  2. What is Meaning of High-value Transactions?<\/a><\/li>\n
  3. Which Type of Transaction Needs to be Reported to I-T Department?<\/a><\/li>\n
  4. Steps adopted by the I-T department<\/a><\/li>\n<\/ol>\n
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    What New Change has been Adopted?<\/h3>\n

    The Self-Reporting Organizations (SROs<\/strong>), such as banks, post offices, cooperatives, fintech companies, and mutual fund houses,<\/strong> have been instructed by the Central Board of Direct Taxes (CBDT<\/strong>) to reveal complete information on the high-value transactions performed by them during the financial year by May 31, 2025,<\/strong> of the next financial year.<\/p>\n<\/div>\n

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    What is Meaning of High-value Transactions?<\/h3>\n

    A person\u2019s account is credited or debited with a large amount by a bank or institution that crosses a certain limit; it needs to be reported to the Income Tax Department. This information is reported to the I-T department under Statement of Financial Transactions (SFT<\/strong>) in Form 61A or as a reportable account in Form 61B.<\/strong> This provides the IT department access to the financial transactions performed by the individual and helps ensure tax compliance.<\/p>\n<\/div>\n

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    Which Type of Transaction Needs to be Reported to I-T Department?<\/h3>\n

    1. Cash payments made against bank drafts, pay orders, banker\u2019s checks, or RBI prepaid instruments:<\/strong><\/p>\n