Income Tax Notice: If you transact in cash above this limit, you will receive an income tax notice, know the rules..

Income Tax Notice: The Income Tax Department keeps a close watch on the money transactions happening in the country. Whether the transaction is in cash or online, the Income Tax Department keeps an eye on everyone. Even the money you keep in your account and at home is under the department's watch. How much money is being sent where and how much is being borrowed from where, and whether tax is being paid on that money or not, the Income Tax Department keeps a strict watch on all these things.

In such a situation, some people transact in cash to avoid tax, but let us tell you that strict rules have been made on cash transactions as well. If you transact in cash, then you need to be careful, otherwise, the Income Tax Department's notice can come to your house someday. Let us know the rules related to cash transactions in the news below -

People who transact in cash, be careful -

If you have to give money to someone and you are giving it in cash, then you should be careful with this financial transaction. The Income Tax Department keeps an eye on that money, and you may have to face an investigation by the Income Tax Department. A small mistake can get you a notice from the Income Tax Department.

You will get a notice for cash transactions above the limit -

There are some rules regarding cash transactions, while if you do cash transactions above a limit, you may have to participate in the investigation by the Income Tax Department. You may get a shock of notice, because the Income Tax Department keeps an eye on the transactions of all your activities.

This is how the Income Tax Department keeps an eye -

The Income Tax Department is keeping an eye on cash and other transactions using modern tools. The Income Tax Department can hand you an Income Tax notice by looking at the big difference in your transactions, your income, and expenses. If you have done more transactions and your income is lower, then you are sure to get a notice.

Notice will be received on the transaction in cash.

There are many transactions in which transaction in cash transactions can prove to be costly. Although the Income Tax Department keeps a close watch on digital transactions, but the Income Tax Department also keeps a keen eye on cash transactions. There are some transactions in which, if you transact in cash, you may get a notice from the Income Tax Department.

Notice on deposit in savings account.

If you deposit more than a certain limit in your bank account, then you can also get a notice for this. If you deposit a cash transaction of 10 lakhs or more in your bank, then the Income Tax Department can give you a notice (Income Tax Notice) to know the source of this money.

If you make an FD in the bank through cash, then the Income Tax Department can send you a notice. This notice will come only if you make an FD of 10 lakhs or more in cash. To which you will have to answer the Income Tax Department.

Credit card payment in cash

Even if you pay the amount of credit card in cash (Credit Card Rules), you may have to face the investigation of the Income Tax Department. If the credit card or bill is one lakh or more, then it will be better if you pay it online. If you deposit it in cash, then you may have to face the notice of the Income Tax Department (Income Tax Notice).

Notice on cash in mutual funds and the stock market.

You may also get the notice of the Income Tax Department (Income Tax Department Notice) on cash transactions in mutual funds and the stock market. If you invest more than 10 lakh rupees in cash, then you may have to face a notice.

Keep in mind while making a property payment -

Buying and selling property is a very expensive deal. People often invest in property as well. There is also a limit on cash transactions in property (Property Purchase Payment Rule). The limit is Rs 50 lakh in urban areas and Rs 20 lakh in rural areas. If you have to make a property payment of more than this amount, then you will have to inform the Income Tax Department about it. There is a rule on cash transactions.

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