Your savings account isn’t as ‘innocent’ as you think. Here’s why even simple daily transactions can trigger scrutiny. From online shopping to cash deposits, your savings account records everything and the Income Tax Department sees more than you imagine. Chartered Accountants Abhishek Soni (CEO, Tax2Win) and Tarun Kumar Madaan reveal 10 common actions that quietly alert the tax authorities.
Get ready some of these might surprise you.
Top 10 Savings Account Moves That Can Raise I-T Red Flags
1. Cash deposits over ₹10 lakh (in a year)
Your bank MUST report this. Not illegal, but you must explain the source.
📌 Tip: Keep gift deeds, sale receipts, proof of income.
2. High-value credit card payments
Banks report if you:
- Pay ₹1 lakh+ in cash, or
- Pay ₹10 lakh+ in total annually.
I-T compares this with your declared income – lifestyle vs. income mismatch? Problem.
3. Unusually high or frequent cash withdrawals
Huge or repeated withdrawals that don’t match your earnings = red flag.
Show business bills or payment proofs if questioned.
4. Buying or selling property above ₹30 lakh
Registrars directly report it. Your income must justify the deal for both buyer and seller.
5. Dormant account suddenly becomes active
An old ‘sleeping’ account receiving large deposits triggers suspicion.
Be ready to prove inheritance, business restart, etc.
6. Foreign currency spend or receipts over ₹10 lakh
Forex cards, international transactions, overseas tours are all monitored.
Mismatch with income = scrutiny.
7. Interest mismatch in AIS / 26AS
Even a small mismatch between bank-reported interest and what you declare can trigger a notice.
8. Interest, dividends & capital gains, reported automatically
Even ₹200 interest will reflect in AIS.
Not declaring them = automated alert.
9. Multiple accounts but missing interest in ITR
Forgot a small account? The system won’t.
Combine all interest and report.
10. Letting someone use your card during sales
Sounds harmless? It’s not.
During festive offers, if someone uses your card and later repays you in cash, or your card shows high payments, it can be flagged under SFT reporting.
The I-T system automatically correlates this with your income.
Why This Matters
Today’s tax tech is fully automated, AI-driven, and cross-verified. Even simple acts – gift deposits, festive shopping, forgotten accounts can trigger questions.
As CA Abhishek Soni puts it:
“Most issues arise not from wrongdoing, but from not keeping records.”
And Tarun adds:
“The I-T Department now matches lifestyle spending with declared income.”
Final Word
You don’t need fear just awareness.
Track your accounts. Keep receipts. Cross-check AIS.
Because in 2025, your savings account speaks louder than you do.