Income Tax Notice: Income tax keeps an eye on those making cash payments, can send notice in these cases..
If you have a habit of doing cash transactions or transactions then you may have to worry. It is also possible that you may receive an income tax notice. In such a situation, know about those five value transactions, due to which the Income Tax Department can send you a notice. Can even call you for questioning.
Notice may come for depositing more than Rs 10 lakh cash in the bank
According to the rules of CBDT, if you deposit Rs 10 lakh or more cash in the bank in a financial year, then it is necessary to inform the Income Tax Department. If you deposit more than Rs 10 lakh in more than one bank account, you may receive an income tax notice.
On depositing Rs 10 lakh in FD
If you deposit Rs 10 lakh cash in one or more FDs in the same financial year, you may receive a notice. For this, the Income Tax Department issues a notice to reveal the source of money. Therefore, deposit most of the money in FD through cheque.
Buying property or mutual funds in cash
If any cash transaction of Rs 30 lakh or more is done for property, the property registrar has to inform the Income Tax Department. In such a situation, the Income Tax Department may ask what is the source of your money. Even if you buy mutual funds, bonds, or debentures by paying cash, you may still be asked questions.
On credit card repayment of more than Rs 1 lakh
If you pay a credit card bill of Rs 1 lakh or more in cash in a year, the Income Tax Department may question where the money came from. Apart from this, even if you pay Rs 10 lakh or more in credit card bills, the Income Tax Department may question you as to where this much money came from.
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