8 Bank Transactions That Invite Income Tax Questions

• Large cash deposits exceeding ₹10 lakh annually in savings accounts or FDs can trigger income tax scrutiny to verify the source of funds.
• Credit card bill payments over ₹1 lakh in cash or ₹10 lakh via bank/online annually are reported to check if lifestyle matches declared income.
• Transactions exceeding ₹10 lakh annually in shares, mutual funds, or bonds are reported to cross-check capital gains/losses and tax reporting.
• Property purchases or sales over ₹30 lakh, especially with significant cash, are flagged to prevent under-reporting or hidden cash.
• Jewelry purchases over ₹2 lakh (requiring PAN), large international travel expenses, and high-value items in lockers can attract tax department attention.

Why It Matters: Beware: Large financial transactions can trigger income tax scrutiny.