SHORT ANSWER:
Yes, the Income Tax Department can track digital payments.
DETAILS:
- The Income Tax Department uses data analytics and information from banks and financial institutions to monitor digital transactions.
- All digital payments above a certain threshold are reported to the tax authorities.
PUNISHMENT / IMPLICATIONS (if applicable):
- Failure to report income from digital payments can lead to penalties and legal action under the Income Tax Act.
SOURCE:
- Income Tax Act, 1961
Related Questions: