How does the Income-Tax (I-T) department track high-value transactions?
Sometimes the amount spent in certain transactions by an individual may be much higher than his income, as shown in I-T returns. Such transactions are reported to the tax department by third parties, such as banks, mutual funds and others.
Which transactions are reported?
Transactions that get reported include cash deposits of Rs10 lakh or more in a financial year in one or more accounts of a person (excluding current accounts and time deposits); term deposits of Rs10 lakh or more; cash transactions in current accounts amounting to Rs50 lakh or
