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15 High Value Transactions tracked by Income Tax

Shitanshu Kapadia
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4
15 High Value Transactions tracked by Income Tax

The transactions done in the high denomination is known as high-value transactions. All high-value transactions are tracked closely by the Income Tax department. It is mandatory to report all high-value transactions in the prescribed format by the banks and all other financial institutions. The prescribed format is called a Form 61A or Annual Information Return (AIR). Any mismatch found in Income reported in ITR vs investment/expenditure may lead to an Income tax notice. So, you need to be very careful while doing financial transactions.

high value transaction india

15 High-Value Transactions tracked by Income Tax

Cash Transaction

  1. If anyone deposits cash aggregating to Rs 10 Lakh rupees or more in a year in any savings account it is called as a high-value transaction.
  2. Payment in cash aggregating Rs 10 Lakh or more in a year for the purchase of DD, Pay Orders, or Bankers Cheque
  3. Payment made in cash aggregating Rs 10 Lakh or more in a year for purchase of pre-paid instruments issued by RBI
  4. A Cash deposit aggregating to Rs. 50 Lakh or more in a year in one or more current accounts of a person.
  5. A Cash withdrawal aggregating to Rs. 50 Lakh or more in a year in one or more current accounts of a person.
  6. A cash deposit in any bank account above Rs. 12.5 Lakh after the note ban i.e from 9th Nov, 2016 to 30th Dec 2016.
  7. A cash deposit in the current account above Rs 12.5 Lakh after note ban i.e from 9th Nov 2016 to 30th Dec 2016.

Term Deposit in Bank and Post Office

  1. One or more term deposits (other than renewal) aggregating to Rs. 10 Lakh or above.

Immovable Property  

  1. Sale or purchase of immovable property for an amount exceeding Rs. 30 Lakh or above

Credit Card

  1. Credit card payments aggregating Rs.2 Lakh or above in a year are also considered high-value transactions.
  2. An expense in foreign currency via debit card, credit card, or traveler’s cheque for the amount exceeding Rs.10 Lakh or above in a year.

Stock Bond Mutual Funds Investment

  1. A receipt of amount Rs.1 Lakh or above in a year for the purchase of shares issued by the company.
  2. A receipt of an amount aggregating to Rs.5 Lakh or above in a year for the purchase of bonds, and debentures.
  3. Receipt from any person of an amount of Rs. 2 Lakh or above for the purchase of units of a Mutual Fund
  4. Cash payment received for the amount exceeding Rs. 2 Lakh for the sale of goods or services by a professional.

Who is responsible for reporting high-value transactions?

The list of third parties responsible for reporting high value transactions mentioned above is given below.

  • Banks – Private, public and co-operative banks
  • Post Master General of Post Office
  • Non-Banking Financial companies
  • Broking companies issuing shares, debenture, and mutual funds
  • Credit Card Companies

All these third parties need to file Form 61A also called as Annual Information Return. This is as per section 285 BA of the Income Tax Act 1961. This document contains information about transactions including the name of the person and PAN card number.

What should you do?

In order to avoid income tax notice or scrutiny you should do the following things.

  • You should pay income tax honestly based on the applicable tax slab.
  • You should disclose your correct income in ITR.
  • Avoid High-value transactions.
  • If it is necessary to do high-value transactions you should be in a position to justify the source of income.
  • You should mention PAN card details while doing high-value transactions.

Remember consequences of doing high-value transactions are very scary. It may lead to income tax notices, penalties, and scrutiny. Be careful in doing high-value transactions.

What is Benami Property? What is prohibition of benami property act?

Shitanshu Kapadia
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0
What is Benami Property? What is prohibition of benami property act?

benami property

Benami Property is the popular word today. We keep on hearing this word very often but do we really know the meaning of Benami Property and implication of holding benami property. In this post, we will discuss what is benami property? What is prohibition of benami property act? How benami property act will eradicate black money?

What is Benami Property?

An actual meaning of benami is without any name. Benami Property means property purchased on the name of someone else. In simple terms suppose you want to purchase a plot. However, when you are making a purchase, you are not purchasing a plot on your name. You are purchasing this plot on the name of close relative say your brother. The property purchased like this will be called as a benami property.  The holder of the property is known as benamidar.

Also Read – 10 Things you need to know about Real Estate Bill

These types of properties are generally purchased for the direct or indirect benefit of a person paying money for the purchase. Few examples of property falling under benami category are given below.

  • A property purchased on the fictitious name.
  • The owner of property is missing or not traceable.
  • The property owner defined on paper does not know about the transaction.
  • The money is paid from undisclosed income (black money) and PAN card number is not mentioned.
  • Incase if beneficiary and owner of a property are not same.

What are the exclusions for the benami properties?

There are some exclusions for the benami properties. These exclusion includes –

  • If the property is purchased in the name of wife or on the name of unmarried daughter, it is not benami property.
  • If a property is jointly held by a wife or other relatives with known source or fund it is excluded from benami properties.
  • If property is already declared under Income Declaration Scheme – IDS 2016.
  • In case of HUF, if head of HUF or Karta decide to buy a property for the benefits of all trustees.
  • Charitable or religious properties are excluded.

How Benami Property will be identified?

In order to identify benami properties, authorities consider following factors.

  • Authorities will look at the source of fund used for making purchase of property. Tax on this fund is paid or not.
  • If the property is purchased on someone else name what is the purpose behind buying the property.
  • The authority will find out who is holding a document of the property.
  • If you are earning any income from this property you have declared this income in your return or not.
  • The authority will also assess that actual possession of the property is with whom.

Also Read – 10 Best Real Estate Apps on android smart phone

What is prohibition of benami property act?

In order to curb this malpractice “Prohibition of Benami Property Act” was formulated and strict provisions are made. This act is in force from 1st November, 2016. As per this act following action can be taken against benami properties and benami property holders.

  • As per act property identified as benami can be seized by the government without any compensation or payment.
  • Up to seven years of jail and fine up to 10% of the fair market value of property.
  • Five years of jail and fine for furnishing incorrect information.
  • An appellate mechanism has been provided in terms of adjudicating authority and appellate tribunal.

You can find more information about prohibition of benami property act from here.

Over to you –

Holding a Benami property is a crime against the nation. If you are holding these types of property get ready for the penalties and imprisonment including loss of property.

This step is taken to eradicate black money. People with black money will sure have a tough time ahead.

You need not to worry if you have already declared your income or asset in IDS 2016 or you are not holding any benami properties.

Do share your views in the comment section.

UAN Password reset and change UAN Password

Shitanshu Kapadia
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3
UAN Password reset and change UAN Password

I forgot my UAN password and my mobile number is changed, How to get a new UAN password or reset and change UAN Password? This question was asked recently by one of our blog readers. So, in this post, I will try to answer this question.

UAN Password reset and change UAN Password

Case 1 – UAN Password Reset or change – Your mobile is registered and you have your mobile

  • Visit UAN Member e-SEWA portal by clicking here.
  • Click on Forgot Password.
  • Fill up your UAN Number and Enter Captcha Text.
  • Click on Submit button.
  • The screen will show that “Your password has been reset and new log-in details has been sent to your registered mobile.”

Also Read – EPFO mobile app launched – Check EPF balance on the move

UAN Password

  • You will get SMS on your registered mobile number mentioning your username and password.
  • Login via new password to UAN Member portal and change your password.

Case 2 – UAN Password change through profile

  • Login to UAN Member e-SEWA portal using your username & password
  • Click on PROFILE > CHANGE PASSWORD
  • Enter your old password and new password twice.
  • Click on Change Password button.
  • The screen will display message “You have successfully change your password.”
  • You will also get SMS Notification on registered mobile number about password change.

Case 3 – UAN Password Reset or Change – Your mobile number is changed

In case your mobile number is changed and you forgot your password, you have three ways to change password of your UAN.

1) UAN Helpdesk

  • Visit UAN Helpdesk.
  • Click on Register as Member link.
  • Select Problem Type > FORGOT PASSWORD AND MOBILE NO. IS CHANGED.
  • Fill up details like current mobile number, UAN Number, Name, Date of Birth and Problem matter. (Refer screenshot given below).

Also Read – Track Inoperative EPF account – How?

UAN Password

  • Click on Generate OTP.
  • Once your query is submitted wait for the answer. There may be a delay in the response.

2) Opt for same Mobile Number

The second way is to opt for the same mobile number. If you have kept your mobile inactive for 90 days your mobile number might be issued to someone. If it is not issued to someone else you can approach service provider asking for the same mobile number. Opt for least subscription plan preferably postpaid. On password change you can discontinue this number.

3) Request for password

If your mobile number is issued to someone else, you can request that person to forward UAN SMS to your current mobile number. If he/she agrees on that you can use method describe in Case 1 to reset your password. The third way is the fastest way to reset your UAN password in case your mobile number is changed.

I hope method described above will help you for UAN Password reset or Change in UAN password.

How to double your salary – 10 proven ways

Shitanshu Kapadia
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2
How to double your salary – 10 proven ways

Imagine how good it is if your salary gets doubled? It’s really exciting right! Well, our desires are unlimited and salary is limited, it’s a common problem of every salaried people. If you are a salaried person you have two options either limit your desire or increase your salary. If limiting desire is not your cup of tea only option left with you is increasing your salary.

It may sound impossible to double your salary at the first instance. However, there are practical ways to drastically increase your paycheck. I have used it and fortunate enough to increase my salary in few years.

So, today let’s explore 10 proven ways of doubling your salary.

How to double your salary – 10 proven ways

1. Leverage

Do you know why CEO of company paid more? The reason is they produce a more valuable result because of leverage they have. So, the first way to increase your salary dramatically is to increase your leverage. Develop an ability to do more with less.  It is not an overnight process, you need to learn more skill and achieve the result required by your company.

2. Maximize Your talent

Everyone has some specific skill set or talent. You need to identify and maximize your talent as per the requirement of your organization. If you can able to enhance your talent as per your employer requirement you can double your salary.

3. Take Initiative

The third way to increase your paycheck is by taking initiative. Go beyond your job description. Accept the new projects and responsibilities. Make your employer realize that your presence is important for the organization. Go extra mile be it overtime or extra work.

4. Be a Team player

You should act as a team player by helping other in doing their job. Always offer help to boss and coworker as and when required. As a team player, you are increasing your chance to double your salary.

Also Read – 10 Tips to get quick promotion & salary rise

5. Adopt New Role

Another way is to stay open minded and ready to adopt a new role. You cannot double your salary by doing the same thing forever. You need to take up new role add more responsibility and manage more people to increase your paycheck.

6. Change your profile or Industries

The next proven way to double your salary is to change your job profile or industries. If you feel that your current job profile or industry is not likely to pay you more salary you can change your profile or industry. However, you need to do a lot of hard work for doing so.

7. Develop new skills

The next way to double your salary is by developing new skills. A new skill will make your more valuable and your chance of getting salary rise will be more.

8. Keep your boss happy

Another way to increase your paycheck is by keeping your boss happy. Always complete a job in time. Your boss should never complain about you & more importantly you should be an asset to your boss and your organization.

9. Demonstrate strong work ethics

You should demonstrate a strong work ethics and integrity in order to increase your paycheck. Complete your work with accuracy. You should be a dependable resource for your organization.

Also Read – Simple Ideas for making more money

10. Change Job

If all above ways do not work for you the last way to double your salary is by changing your job. It is easy to negotiate your salary while you are changing your job. If possible go for big companies with a higher position as big company and higher position will lead to better paycheck.

salary

Over to you –

If you are living your life only on paycheck you should adopt the proven ways given above for doubling your salary.

Do you think above ways will help you in increasing your paycheck?

Do share your view and experience in the comment section.

If you like reading this article, do share it with your friends on facebook and twitter!

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