01/01/2026
FOR THOSE WITHOUT DATA TO WATCH THE VIDEO, READ THIS!
Transfer narration alone does NOT determine tax.
Tax is based more on your income pattern than the words you write in narration.
Think of narration like a label on a box, it doesn't prove what is inside.
Banks check:
• Who sent money
• How often
• Amount
• Pattern over time
Tax authorities care about:
• Regular inflow
• Frequency like business income
• Large/steady deposits
• Multiple senders
• Consistency
Example:
• ₦500k once — usually nothing
• ₦200k every week — looks like income
Even if your narration says "gift", "support", "urgent 2k", pattern beats narration.
When narration helps:
• Family support
• Refunds
• Loan repayment
• Transfer to self
Examples:
• "Family support"
• "Refund"
• "Loan repayment"
But narration ≠ immunity.
If you run a business, freelance, sell online, do crypto/content etc, frequent deposits = income, regardless of narration.
Banks mainly use narration for record purposes.
Tax office focuses on the reality of money coming in.
No, narration does NOT automatically attract tax.
Tax applies when income is identified and you fall into a taxable class.
To be safe:
• Don’t rely on narration to hide income
• Separate business & personal accounts
• Register your business if income is consistent
• Keep simple financial records
