Imagine you buy a coffee, pay for your movie ticket, or transfer money to a friend. Most of these everyday transactions go unnoticed, yet some payments, investments, and bank movements quietly catch the attention of the Income Tax Department. Have you ever wondered why certain transactions are tracked while others are not? In this article, we will explore which financial activities the tax authorities monitor and which ones remain beyond their radar.
Transactions Tracked By Income Tax Department
According to Section 285BA of the Income Tax Act and Rule 114E of the Income-tax Rules, 1962, certain high-value transactions that exceed specified limits in a financial year must be reported to the Income Tax Department. This is done by filing a Statement of Specified Transactions using Form 61A. The purpose of this reporting is to maintain transparency in financial dealings and help detect any cases of tax evasion.
The Income Tax Department keeps an eye on certain high-value financial transactions. For instance, cash deposits exceeding Rs 10 lakh in savings or fixed deposit accounts are tracked, as are cash deposits or withdrawals over Rs 50 lakh in current accounts. Credit card payments above Rs 1 lakh in cash, or Rs 10 lakh through other modes, also attract attention.
Adding further, the property transactions worth Rs 30 lakh or more, whether purchases or sales, are monitored, along with investments in bonds, shares, or mutual funds exceeding Rs 10 lakh. These thresholds help the authorities track significant financial movements while routine transactions usually remain beyond their radar.
Transactions Not Tracked By Income Tax Department
The Press Information Bureau’s (PIB) fact-checking unit clarified a viral claim suggesting that the Income Tax Department monitors citizens’ emails, social media accounts, online shopping, digital payments, and personal apps. According to the official statement, the Income Tax Department does not track online shopping, digital payments, app-based transactions, or any form of personal spending behaviour. There is no mechanism to monitor an individual’s digital or online activity.
Income Tax Refund Delay In 2026: Key Reasons
If you filed your income tax return (ITR) for FY 2024–25 and are still waiting for your refund in 2026, you are not alone. Many taxpayers are feeling uneasy as refunds seem slower this year. For returns filed for FY 2024–25 (Assessment Year 2025–26), the department has time until December 31, 2026 to process them under Section 143(1) of the Income Tax Act. This means refunds can legally take several months, even after successful filing and verification.
Several factors can cause delays. Very high refund claims can trigger extra checks, while mistakes or mismatches in your information are another common reason. It’s important to ensure your bank details are correct and that your PAN is linked to your Aadhaar. On top of that, any unpaid taxes from previous years can block or reduce your refund. Paying attention to these details can help your refund reach you faster.
