Be Alert! Taxman is watching you for every big transaction you make

P.C Mody chairman of Central board of direct tax (CBDT) said, “The Income tax department will keep a record of high-value transactions of the individuals to ensure that it gets reflected into income tax returns.
Greater use of technology to keep a record of huge transactions who do not file income tax returns even though they are included in high-value transactions.”

By comparing the income and expenditures made by the people with their known sources of income, the income tax department wants to make sure that people do not escape taxes.

The importance of efficiency in tax gathering and on adding more taxpayers comes at a time when a slowing economy made it more difficult for the tax department to achieve the 12.7% growth in direct tax collections in FY21 while nominal GDP growth is supposed to be 10%.

Information mechanism is increased to a newer level and third-party financial institutions are being increased and once the income department has the information of taxpayers, they will keep a track of high-value transactions made by taxpayers and how he is filing the IT returns.