INCOME-TAX NOTICES High-value expenses must sync with bank withdrawals

The Income-Tax (I-T) Department recently issued notices to high-income individuals whose bank accounts reflect unusually low withdrawals.

- HIMALI PATEL

The Income-Tax (I-T) Department recently issued notices to high-income individuals whose bank accounts reflect unusually low withdrawals. According to media reports, the department sought a detailed breakdown of their monthly expenditures to identify possible tax evasion.

Why the scrutiny? Tax experts say that when declared income is high but bank withdrawals are minimal, it raises concerns about unreported cash transactions.

"Such discrepancies may suggest that individuals are engaging in cash-based transactions that are not reflected in their bank statements," says Suresh Surana, a Mumbai-based chartered accountant.