How Income Tax Department Is Tracking Your Transactions

To check tax evasion, the Income Tax Department has stepped up its vigilance against undeclared income.

Now, you have to report PAN on all your high-value transactions. Property registrars and financial institutions with which you deal with like your bank, insurer, mutual fund company and credit card company feed the tax department with information regarding your big transactions.

The tax department compares this information with the return filed by you.
“Through these reporting the tax department is trying to compare your overall income with your expenses and investment to assess the correct tax liability and finally the evasion if there is any,” says Sudhir Kaushik, CEO and co-founder of Taxspanner.com.

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