Income Tax Notice: When does the income tax notice come, how to respond, know everything here..
Many times people make the mistake of transacting more money than the limit from their savings account. Due to this mistake, a notice from the Income Tax Department comes to their house. Sometimes the bank even blocks the account. If you want to save yourself from this problem (transaction rules), then you should know about the rules.
Why does income tax notice come?
If you make a transaction of more than Rs 10 lakh from your account and do not give its information to the Income Tax Department (ITR Return File) in your ITR, then a notice can come to your house. Not only this, there is a possibility of getting a notice even if the credit card bill is more than 1 lakh. If you make its repayment through cash (cash repayment). If you deposit an amount of more than 30 lakh in cash while buying a house, even then the department sends you a notice (Income tax notice) to ask the source of that money.
How to protect yourself?
Income tax can send you notice in two ways. One way is offline and the other is online. Once you receive the notice, you have to verify with a CA or yourself (Income tax penalty) whether the notice is correct. If there is any such information in it, for which you have been penalized for not providing proof, then you can once again file an ITR and tell the complete details to the department. With this, the department withdraws the penalty imposed on you.
How much money can you keep?
You can deposit and withdraw as much money as you want in a normal savings account. There is no limit to deposit or withdraw money in it. However, there is a limit to depositing and withdrawing cash by going to the bank branch (online bank transaction), but through cheque or online medium, you can deposit from 1 rupee to thousand, lakh, crore, billion, or any amount in the savings account (saving account rules) and can also maintain the balance.
Bank companies have to respond to the tax department every year when customers withdraw an amount of Rs 10 lakh or more from the bank. Under the tax law, the bank has to provide information about those accounts during the current financial year (current account rules). This limit is seen overall for cash deposits of ten lakh rupees or more in one or more accounts of taxpayers in a financial year.
However, there is generally no fixed limit for deposits in a savings account. Many times banks increase or decrease the limit according to the account. Whenever the cash deposit limit in your savings account exceeds Rs 50,000 (income tax rules), you have to give your PAN card details to the bank. Let us tell you that this rule also applies to transactions related to cash deposits and withdrawals for investment in shares, mutual funds, debentures, FDs, credit card expenses, transactions in real estate, purchase of foreign currency, etc. linked to your savings account.
What is the transaction limit?
People are using payment apps like Google Pay, Paytm, and PhonePe these days. This limit has been fixed for them. According to the National Payments Corporation of India (NPCI), a person cannot transfer more than Rs 1 lakh through UPI in 24 hours. If you want to transfer more money from your savings account, then you will have to use services like NEFT, and RTGS available in your bank's app (UPI payment). Banks also charge for this at their own discretion. Let us tell you that with the help of NEFT service, you can transfer as much money as you want starting from Rs 1. There is no maximum limit. Banks take up to 24 hours for this. Sometimes it gets done faster also. Talking about RTGS, you can transfer at least Rs 2 lakh and a maximum as much money as you want through this service (online payment transfer). This transfer happens immediately.
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