ITD Tracking Myths:Which Transactions Are Really Monitored?
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ITD Tracking Myths:Which Transactions Are Really Monitored?
In a recent clarification on January 6, 2026, the Press Information Bureau (PIB) fact-checking unit debunked viral social media claims that the Income-Tax Department (ITD) is monitoring citizens’ private digital lives. Contrary to rumors, the department does not have a “lifestyle profiling” mechanism but instead relies on structured, high-value financial data.
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1. The “Privacy” Fact Check
A viral post by ‘bingewealth’ claimed the ITD tracks personal app usage and social media. The PIB has officially stated:
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NO Monitoring of: Emails, social media profiles (Instagram/X), personal apps, or general online shopping behavior.
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NO Surveillance of: Daily digital payments (small UPI transactions for groceries, etc.) or personal spending habits.
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“The system is transaction-based, not behavioral. There is no mechanism to monitor an individual’s digital activity.” — PIB Fact Check
2. What is Actually Tracked? (Form 61A / SFT)
The ITD receives information only through Statement of Financial Transactions (SFT). Banks and financial institutions are legally required to report transactions that exceed specific thresholds.
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| Transaction Type | Reporting Threshold (in a Financial Year) |
| Savings Account | Cash deposits aggregating to ₹10 Lakh or more. |
| Current Account | Cash deposits or withdrawals aggregating to ₹50 Lakh or more. |
| Fixed Deposits (FD) | New cash deposits aggregating to ₹10 Lakh or more. |
| Credit Card Bills | ₹1 Lakh (paid in cash) or ₹10 Lakh (paid via any other mode). |
| Investments | ₹10 Lakh or more in Shares, Mutual Funds, Bonds, or Debentures. |
| Real Estate | Purchase or sale of immovable property worth ₹30 Lakh or more. |
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3. When Should You Be Concerned?
The ITD only intervenes when there is a discrepancy between your reported income in your Income Tax Return (ITR) and the high-value transactions linked to your PAN.
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The Process: If a mismatch is found, the ITD issues a Show Cause Notice.
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The Solution: If you can justify the transaction (e.g., a property sale used to buy another, or a gift from a relative) with adequate proof, the proceedings are typically dropped….
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