The eyes of the tax department
Trying to hide a big cash deposit or a property buy is nearly impossible today. The department uses the SFT (Statement of Financial Transactions), reports filed by banks, registrars, and others, to track high-value activity against your PAN.
What can trigger it
SFT reporting thresholds include Rs 10 lakh or more in cash deposits, Rs 10 lakh or more in shares/MF/bonds, Rs 1 lakh or more in credit card bills paid in cash, and property of Rs 30 lakh or more (Source: Income Tax Rule 114E).
| Transaction | Reporting threshold |
|---|---|
| Cash deposit in savings | Rs 10 lakh or more in a year |
| Mutual funds / shares / bonds | Rs 10 lakh or more in a year |
| Credit card bill (cash) | Rs 1 lakh or more |
| Property purchase / sale | Rs 30 lakh or more |
If your ITR shows Rs 5 lakh income but SFT shows a Rs 40 lakh flat purchase, the system asks you to explain the source.
How to respond (portal path)
- Log in at incometax.gov.in and open the Compliance Portal (via Pending Actions > Compliance Portal / e-Campaign).
- Review the exact SFT entry being questioned.
- Submit a response: "Information is correct", "Information is not fully correct", or "Information relates to other PAN".
- If correct, explain the source: past savings, a loan, sale of another asset, or a gift.
What you should do
Check your AIS for SFT lines before filing, and keep proof of the source of big-ticket funds (sale deed, loan sanction, bank statements).
Common mistake
Assuming a high-value transaction is taxable by itself. It is not income, but an unexplained source is what creates trouble.
How LastMinute ITR helps
LastMinute ITR surfaces SFT and high-value lines from your AIS so nothing is overlooked before you file. Start at /file, import at /file/import/documents, and reconcile at /file/import/mismatch.
LastMinute ITR is a companion tool, not affiliated with the Income Tax Department. You file and e-verify your return yourself on incometax.gov.in.