A person even if he is not an income-tax assessee, the income-tax authorities may make enquiries from him by requiring him to attend before the authorities in the following circumstances-
(1) If he deposits a sum of Rs.10,00,000/- in cash in his bank account. The sum of Rs.10,00,000/- may be deposited on different dates. The aggregate sum of Rs.10,00,000/- will be considered. Please note that the mode of deposit is cash. Then only Income-tax Authorities start enquiries.
(2) If a person makes payments against bills raised through his credit card in a year aggregating to Rs.2,00,000/-
(3) If he sells or purchases any immovable property worth Rs.35,00,000/- in a year.
(4) If he purchases Units worth Rs.2,00,000/- from any mutual fund in a year.
(5) If he acquires shares in a company worth Rs.1,00,000/- in a year.
(6) If he purchases bonds from Reserve Bank of India worth Rs.5,00,000/- in a year.
If any one of the above transactions are made by any individual the information must be filed with the Income-tax department i;e.; by the bank where the money is deposited, by the bank or any other institution who has issued the credit card, the sub-resgistrar where the registration of the property was made, the compnay from whom he acquired the shares, by the mutual fund from whom he purchased units and the Reserve Bank of India form whom he purchased the Bonds. The information filed by those persons is called Anual Information Return (AIR). On receiving the AIR the Income-tax Authorities start enquiries and take necessary action.