Income Tax Dept Tracks High-Value Transactions: What Spenders Must Know in 2025
Jun 19
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The Income Tax Department has launched a renewed crackdown on individuals who spend big but declare less. Leveraging real-time data and advanced analytics, the department is now monitoring high-value transactions more strictly than ever before. This shift is part of its larger mission to curb tax evasion and enforce compliance through improved reporting and surveillance.
This has increased the importance of staying compliant. If you're managing large finances, it’s crucial to file accurate income tax returns, stay updated with your TDS filings, and understand your advance tax liabilities.
🧾 What Qualifies as High-Value Transactions?
As per updated rules under Form 61A and Form 61B, the following transactions must now be reported:
Transaction Type | Limit | Reporting Entity |
Cash deposit in savings a/c | ₹10,00,000 | Bank/Post Office/Co-op |
Cash deposit or withdrawal in current a/c | ₹50,00,000 | Banks/Co-ops |
Sale or purchase of property | ₹30,00,000 | Sub-Registrar |
Investment in shares, bonds, MFs | ₹10,00,000 | Companies/MF trustees |
Credit card bill (cash payment) | ₹1,00,000 | Banks |
Credit card bill (non-cash) | ₹10,00,000 | Banks |
Foreign exchange usage | ₹10,00,000 | Authorized dealers |
FD/RD deposits | ₹10,00,000 | Banks, NBFCs, Nidhi |
If you are managing multiple investments or properties, consider getting a capital gain valuation, property valuation, or business tax return filing done correctly to avoid scrutiny.
🛡️ How the Income Tax Department Is Cracking Down
Mandatory Data Sharing by SROs Banks, fintechs, post offices, and MFs must submit transaction details for every financial year by May 31.
Upgraded Form 26AS & AISThese now show a detailed report of high-value activities. You can check your Annual Information Statement for red flags.
TDS on Cash Withdrawals
2% TDS on withdrawals over ₹1 crore
2–5% TDS if ITR not filed in last 3 years for withdrawals above ₹20 lakhYou may need help with Form 16 or TDS certificate management if you're dealing with these thresholds.
ITR Filing Made MandatoryEven if your income is below ₹2.5 lakh, you're required to file ITR if:
You deposited ₹1 crore+ in a current account
Spent ₹2 lakh+ on foreign travel
Paid electricity bills of ₹1 lakh+Need to file fast? Use our expert ITR filing services including ITR-1, ITR-2, ITR-3, and more.
💡 Don’t Ignore Compliance
With the government tightening the loop, businesses and individuals should:
✅ Keep financials transparent
✅ Maintain digital records
✅ File taxes correctly
✅ Use professional accounting & audit help if needed
📞 Need Help?
Whether it's business compliance, valuation services, or income tax planning, our team is ready to help you stay compliant and stress-free.
