Income tax division has develop into 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’s going to get reported to the division a lot earlier than the taxpayer stories such transaction. This system is efficient even when you find yourself touring overseas. According to tax and funding specialists, whereas touring overseas, money transaction to purchase US dollar or some other overseas forex is allowed, however going beyond a sure limit will get reported to the income tax division by the money changer. This money transaction for getting overseas forex may attract income tax notice, if there may be large hole between the income tax return (ITR) of the taxpayer and the money used for getting overseas forex.
Speaking on the limit beyond which money transaction for getting dollar or some other overseas forex whereas touring overseas Balwant Jain, a Mumbai-based tax and funding professional stated, “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 income tax notice, SEBI registered tax and funding professional Jitendra Solanki stated, “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.”