The IT department has issued such notices to many individual taxpayers. With the help of INTRAC, tax evasion is easily detected.
Tax department’s watch on credit card expenses.
The financial year 2020-21 has ended. In the new financial year (2021-22), a lot of tax rules have changed. Apart from this, the income tax department has also become strict. If someone has evaded tax, then he has started getting notices from the department. Notices have been issued to many taxpayers because they spent more than 1 lakh with their credit card but did not file returns. In such a situation, it is important for you to know what mistakes can be issued to you.
According to the report published in the Economic Times, the IT department has issued such a notice to many individual taxpayers. For some taxpayers who deducted TDS (Tax Deduction at Source) for FY 2019-20, or spent more than 1 lakh credit cards on a financial year but did not file returns, the interest income was shown to be low, such Notice is being issued to individual taxpayers regarding all matters.
Interest income up to 10 thousand is tax free
Interest income up to 10 thousand rupees is tax free in a financial year. More income than that is taxed. If a taxpayer has hidden more than 10 thousand interest income, then a notice can be issued to him. If a taxpayer deposits more than 1 lakh in the credit card bill in cash then the income tax department also keeps an eye on such transactions. Actually your credit card is linked to PAN card. The IT department has also issued notices to some such people.
Mass notice issued
According to people who are aware of this matter, these notices have been issued on a large scale and are about to be issued. In fact, the Income Tax Department has implemented a new intelligence system in which the system shows a red flag on any such taxpayers. The number of taxpayers in our country is more than 60 million. In this, income is largely hidden from taxpayers. In such a situation, it is possible that the notice of the IT department is received on a large scale.
Notice will be given for hiding information in Form 26AS
The INTRAC was brought into effect by the Income Tax Department in July 2020. With the help of this transaction analysis center, those taxpayers whose form 26 (AS) information and earnings from banks and other financial institutions are different.
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