Income Tax Notice: If you also do cash transactions at these 5 places then be alert, income tax notice will come to your home..
Even though today is the era of digital payments, many people still consider cash transactions to be easier and better. However, many people also make cash transactions to avoid the eyes of the tax department.
Even if you make small purchases in cash, making 5 high-value cash transactions can cost you heavily (High-Value Transaction). As soon as the tax department comes to know about this, you may get a notice. Let us know which transactions should be avoided:
1. Money above the prescribed limit
According to the rules of the Central Board of Direct Taxes (CBDT), if a person deposits Rs 10 lakh or more in cash in a financial year, then their information is given to the Income Tax Department. This money can be deposited in one or more accounts (Bank account cash limit). Now since you are depositing more money than the prescribed limit, the tax department may ask you about the source of this money (Tax Department).
2. Cash deposited in fixed deposit
Just as questions arise when you deposit more than Rs 10 lakh in a bank account, the same happens in fixed deposit (FD) as well. If you deposit more than Rs 10 lakh (fixed deposit cash) in one or more FDs in a financial year, then if there is any doubt, the Income Tax Department can ask you about the source of the money.
3. Cash transaction for purchase of big property
If you make a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar (Property buying by cash) will give this information to the Income Tax Department. Due to such a big transaction, the tax department can ask you where this money came from.
4- Payment of credit card bill
If your credit card bill is Rs 1 lakh or more and you pay it in cash, then also you can be asked about the source of the money (Credit card rules). At the same time, if you pay Rs 10 lakh or more in a financial year through any medium, then the Income Tax Department can ask you where this money came from.
5- Buying shares, mutual funds, debentures or bonds
If shares, mutual funds, debentures, or bonds are purchased using large amounts of cash, then this can also alert the Income Tax Department (mutual fund cash rules). If a person makes a transaction of Rs 10 lakh or more, then its information reaches the Income Tax Department. In such a situation, the department can ask you where this cash came from.
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