Last Updated: January 06, 2026
There are many Taxpayers who has escaped the income intentionally or unintentionally by not declaring the Saving Interest, Fixed Deposit Interest, Capital gain transactions, Purchase or sale of immovable properties and other as specified by the department under high value transactions. Taxpayers are getting the email/sms alert from the department about these high transactions value.
However, since the date of revision of income tax returns i.e. 31st march 2025 is over so taxpayers was in dilemma that how to revise or deposit the tax amount.
Now the government has come with a solution to file the Updated Tax Return in Form ITR-U along with applicable ITR Forms (I.e. ITR-1,2,3,4,5,6,7 as applicable)
In the current digital tax framework, the Income Tax Department actively tracks high value transactions to promote transparency and prevent tax evasion. If you’ve received an SMS or email alert about high-value transactions, it’s typically an invitation to verify details in your Annual Information Statement (AIS) or Form 26AS via the e-filing portal.
These alerts stem from Specified Financial Transactions (SFT) reported under Section 285BA and Rule 114E. Banks, post offices, mutual fund houses, property registrars, stock brokers, and other entities must report transactions crossing prescribed thresholds. This data populates your AIS, enabling the department to cross-check against your filed ITR.
What Counts as High Value Transactions (SFT) in FY 2025-26?
High value transactions (also called reportable transactions) include the following with their current reporting thresholds (aggregated annually, bank-wise or entity-wise where applicable; no major changes announced in Budget 2025 for these core SFT limits):
- Cash deposits in savings accounts exceeding ₹10 lakh in a financial year
- Cash deposits in current accounts exceeding ₹50 lakh
- Credit card payments (aggregate) exceeding ₹10 lakh (or ₹1 lakh in specific high-risk cases)
- Purchase or sale of immovable property valued at ₹30 lakh or more
- Fixed deposits (fresh placements) exceeding ₹10 lakh with a single bank
- Mutual fund investments exceeding ₹10 lakh
- Share purchases/sales or debentures/bonds exceeding ₹10 lakh
- Insurance premium payments or maturity receipts above specified limits
- Gold/silver purchases or foreign exchange transactions crossing thresholds
Why You Might Receive Income Tax E-Campaign Alerts
The department runs e-campaigns targeting mismatches between your ITR and SFT/AIS data.
Common triggers include:
- Undeclared bank/FD interest
- Unreported capital gains from property or shares
- High cash deposits not aligned with declared income sources
Step-by-Step: How to Check and Respond to High Value Transactions
- Log in to the e-Filing portal (incometax.gov.in).
- Navigate to e-File > Income Tax Returns > Annual Information Statement (AIS) or view Form 26AS.
- Review SFT entries under relevant categories.
- Provide feedback: Select “Information is correct” or “Information requires clarification” if inaccurate.
- For genuine mismatches, respond via the e-campaign tab or update your return.
ITR-U (Updated Return): Key Rules in 2026ITR-U allows voluntary declaration of escaped income post-regular deadlines:
- File within 48 months from the end of the relevant Assessment Year (extended window from earlier rules).
Example: For AY 2025-26, ITR-U can be filed up to March 31, 2030 (with higher additional tax for delayed filing). - Additional tax: 25% (if filed within 12 months of AY end) to 50% (later filings), plus interest u/s 234A/B/C.
- Ideal for correcting omissions from high-value alerts in older AYs (e.g., AY 2023-24 onward remain highly relevant).
Tips to Stay Compliant and Avoid Future Alerts
- Maintain clear records (bank statements, property deeds, investment proofs) for all large transactions.
- Use pre-filled ITR data from AIS and reconcile before filing.
- Prefer digital payments to minimize cash scrutiny.
- Regularly monitor AIS post-FY end (especially after May).
- Declare all income accurately to match SFT-reported data.
Contact Our CA Experts Today
Email: info@ncagrawal.com
Phone: +91-9718046555
Leave a Reply