Traveling overseas? Buying greenback past this restrict might entice earnings tax discover
Income tax division has turn out to be extremely vigilant towards the money transactions executed by taxpayers. It has advanced such an efficient system during which, if a taxpayer executes any such money transaction, then it’ll get reported to the division a lot earlier than the taxpayer experiences such transaction. This system is efficient even when you find yourself touring overseas. According to tax and funding consultants, whereas touring overseas, money transaction to purchase US greenback or every other overseas forex is allowed, however going past a sure restrict will get reported to the earnings tax division by the cash changer. This money transaction for getting overseas forex might entice earnings tax discover, if there’s enormous hole between the earnings tax return (ITR) of the taxpayer and the money used for getting overseas forex.
Speaking on the restrict past which money transaction for getting greenback or every other overseas forex whereas touring overseas Balwant Jain, a Mumbai-based tax and funding knowledgeable mentioned, “While traveling abroad, one can buy US dollar (USD) or any other foreign currency through cash transaction. But, going beyond ₹10 lakh limit will be reported by the money changer to the income tax department of India. If that cash used for buying overseas tender is not in sync with the travelers’ income tax return (ITR) for that financial year, then in that case, the income tax department may send notice to the traveler.”
On what a taxpayer ought to do after receiving the earnings tax discover, SEBI registered tax and funding knowledgeable Jitendra Solanki mentioned, “Income tax department slapping notice should be taken as a query by taxpayers. After receiving the notice, the taxpayer is advised to go to the income tax department website and reply to the income tax notice by logging in at one’s Form 26AS.”
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