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Income Tax Scrutiny in India

At what time does the income tax department checks your house and does the scrutiny of the earning? In india, here are some of the points where income tax is going to check your bank acccount and also going to do the scrunity of the earning there.

Fixed Deposits and Bonds

If you purchased FDs and Bonds worth more than 5 LakH INR per year then income tax is monitoring you. They are going to take a look at your income source and also at some of the income streams from which money comes to your bank.

Mutual Funds Units

If you invest more than 2 Lakh  INR per year in mutual funds, expect income tax department to check your income streams and rest of the income or savings.

Cash Depostits in Bank

If you deposit more than 10 Lakh INR per year in your bank then you are going to get notice from the income tax department regarding clarification of the income or they might do the scrutiny on their own.

Credit card payments

Though many people use credit cards at higher limits. IT dept is going to check if you are using the credit limit of 2 Lakh per anum with your card.

Stock and ETFs

If you invest more than 1 LKAH in ETF and stock per year then income tax department looks at your account and does the scrutiny for the rest of your portfolio.

Real estate deals

For the deals above 30 Lakh or more, they do the scrutiny of both buyer and seller.

These are some of the point s that i have managed to gather from some of the financial sources for IT and other information.