Did you know that when you make a bank transfer for a wedding gift you should usually write “wedding donation” in the reason for payment? Or that, when offering a loan to a relative or friend, one should write “interest-free loan”? Well, beyond some bureaucratic and lexical excesses, when making a wire transfereven online, write the reason and do it correctly it can guarantee transparency, facilitate accounting management and also represent a form of protection for those who pay and those who receive. Let’s try to understand better why it is important not to neglect this aspect and what needs to be indicated for correct compilation.
Why it is important and what to indicate
Making a bank transfer today is increasingly simple and faster, thanks to the convenience of home banking. However, many underestimate it the importance of including a reasonwhich may instead prove essential to guarantee transparency, avoid problems with the tax authorities and maintain a clear trace of operations.
Even if it is not mandatory in the strict sense, filling in the reason for an online bank transfer can be useful in various situations, both for those making the payment and for those receiving it. The reason for payment is used to explain the reason why a sum of money is transferred from one account to another, be it personal, company or an institution. This is why, when filling in the space reserved for the reason for a bank transfer, it is important to include some key information, such as name and surname of the beneficiary, the reason of money transfer, if any kinship relationships with the recipient.
Correctness “pays”
Filling in the reason for an online bank transfer can make the difference for your clarity and the transaction security: by entering an accurate description, you can easily connect the transfer to an invoice, to a rent, or perhaps to the payment of a service.
Another important aspect concerns the transparencyespecially when the transfer is linked to formal relationships such as employment contracts, purchases or leases. A reason that is as clear and detailed as possible protects both parties, providing a sort of “written test” of what was paid and why, which is especially useful in case of tax controls or legal disputes. If, for example, a customer or supplier disputes the payment, a precise reason can simplify the resolution of the problem by demonstrating the nature of the transaction.
Also on the accounting and tax planespecially for companies and freelancers, the reason becomes essential. It helps to keep the accounting books in order and to more easily reconcile bank transactions with the invoices issued or received. In this way, you not only save time and resources, but you reduce the risk of errors or omissionswhich could lead to economic or legal consequences.
Furthermore, if a written reason fictitiously (for example generically indicating “gift” when in reality it is a payment for a service), could be interpreted as an attempt to avoid any taxation, a clear and precise reason would instead facilitate the traceability of the bank transfermaking it easier to demonstrate the legitimacy of the operation. If the Revenue Agency were to request clarifications, especially for significant sums, the absence of a detailed reason could complicate the situation. While it is unlikely that this will happen for small amounts, it is always best to be precise to avoid problems.
Traceability of the payment
A classic case in which you never forget to fill in the reason for payment is the payment of condominium expenseswhich always specifies the installment and the apartment to which it refers. In other cases, however, we tend to underestimate the importance of the reason for payment, which is instead essential for keeping track of the payment, or being ready in the event of any tax audits. Another example of the usefulness (and in this case also the obligatory nature) of correctly filling out the reason for payment is that relating to payments for jobs covered by bonuses and various incentives, such as those linked to renovations or energy efficiency.
Some practical examples
An example of correct compilation concerns parents who they help a child buy a house: it is advisable that the transfer be made directly to the child, specifying “donation”rather than in favor of the seller, to demonstrate that it is family support. This principle also applies to other situations, such as gifts to relatives or friends, in which it is appropriate to specify “gift” or “donation” in the reason. Even better if you specify the reason for which the transfer is being made, for example graduation, birthday, Christmas , wedding gift (or “obnucial donation”), etc. The important thing is that you don’t risk appearing as a gift black payment.
If, however, you want to grant a loan to a relative or
to a friend, it is essential to indicate, as mentioned,“interest-free loan” in the reason for payment, to avoid the money transfer being interpreted as an undeclared payment, or being taxed.