Income Tax Department`s NEW CHECKS !!!

The Income Tax department will check the details of any cash transaction of more than Rs 50000 if you are a non salaried person. The method adopted by the Income Tax officials is through the introduction of new forms at the time of filing of returns. These forms will contain points that will need to be answered by a non salaried person if his/her dealing in cash is more than Rs 50000.

These assets may include vehicles owned by the individual or property in bullion like Gold ornaments, Real Estate investments etc. The purchase of these products will now on invite identity proofs of the holder. The new guidelines have been framed in order to crack down money laundering, which has been in the news for some time now. The framework of IT department also includes paintings, work of art that a person possess. These details furnished by the persons are for tracking chain of illegal transactions and dealings.

A work of art, bullion, vehicles, houseboats, yachts and private aircraft etc. will form part of the documentation required by Income Tax. The department is also planning to include land deals, money deposited in shares, bank deposits, insurances in the name of the individual. The Income Tax Department is also asking for documents to the loans and advance payments of the assessees. further, the department will ask for the debt and liabilities of the assessees as well.

The step has been taken so that proper facts are reported which were generally hidden from the department at the time of filing the returns. The cross check will be more stringent and the statement by the individual will be checked with third-party sources of tax officials.