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Income Tax Radar: 10 Large Transactions Under Scrutiny, From FD to Property
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News18•26-09-2026, 10:12
Income Tax Radar: 10 Large Transactions Under Scrutiny, From FD to Property
- •The Income Tax department tracks large financial transactions through Statement of Financial Transactions (SFT) and Annual Information Statement (AIS), not just ITR declarations.
- •Cash deposits/withdrawals of ’10 lakh+ in savings accounts or ’50 lakh+ in current accounts, and cash payments for credit card bills ’1 lakh+ are reported.
- •FDs of ’10 lakh+, investments in shares/mutual funds/bonds of ’10 lakh+, and property transactions of ’30 lakh+ are also under scrutiny.
- •Large foreign currency transactions, including purchases of ’10 lakh+, are reported to the tax authorities.
- •Reporting in SFT does not automatically mean a notice; it's crucial to reconcile these transactions with declared income and maintain proper records to avoid issues.
Key Questions Answered
The Statement of Financial Transactions (SFT) is a report sent by banks, mutual funds, companies, post offices, and other reporting entities to provide information about large financial transactions to the income tax department, which may also appear in your Annual Information Statement.
Reporting is triggered if ₹10 lakh or more in cash is deposited into a savings account during a financial year, or if cash deposits or withdrawals reach ₹50 lakh or more in one or more current accounts.
No, reporting a transaction in the SFT does not directly mean receiving an income tax notice, as these details are shown in the AIS to help taxpayers verify financial data, and problems only arise if transactions do not match your declared income.
