If you do a large cash transaction, it can put you in trouble. The Income Tax Department can send a notice to you on depositing money in a bank, investing in a mutual fund or paying a higher credit card bill. That is why if a person performs a large cash transaction, then they have to give information to the Income Tax Department. We are telling you about 6 such cash transactions so that you do not have to face any trouble.
To FD of more than 10 million
if you deposit more than Rs 10 million a year in fixed deposits (FD) may receive notice of the IT department. Whether they are deposited in one go or multiple times or cash transactions or digital. The Income Tax Department can ask you about the source of these money and send you a notice. In this case, deposit most of the money in FD through check.
Do not deposit more cash in the bank account.
If you deposit a large amount of cash in a bank or a co-operative bank, then the bank or the co-operative bank will inform the Income Tax Department. If a person deposits an amount of Rs 10 lakh or more in cash in one account or more than one account in a financial year, the Income Tax Department can send a notice and ask for the source of the money.
Paying credit card bills in cash can also be a problem
if your credit card bill is more than 1 lakh and you fill this bill in cash at one go. You may still notice. On the other hand, if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then you can also be asked about the source of the money. If you have done something like this, then you will have to give this information in your income tax return.
If you make a big cash transaction with the property registrar after paying more cash to buy the property, then its report also goes to the Income Tax Department. If you buy or sell a property worth 30 lakhs or more in cash, it will be reported by the property registrar to the Income Tax Department. In such a situation, the Income Tax Department can ask you for information about this transaction.
Do not give more cash to invest in shares and mutual funds,
if you make more cash transactions in shares, mutual funds, debentures and bonds, then you may face problems. Cash transactions up to a maximum of Rs 10 lakh can be done in such instruments in a financial year. You can get into trouble if you make a cash transaction of more than this.
According to section 269ST, if a person receives an amount of 2 lakh or more in cash, then penalty will be imposed on that person. That is, in this section, the penalty will be imposed on the cash recipient and not on the person who paid the amount. So if you are taking 2 lakh or more as a gift, then take it only through banking channels, such as: – A / C Payee Check, or A / C Payee Bank Draft, or through Electronic Clearance System. Transfer from bank to. If the payment is received through a self-check, then it will also be treated as a cash transaction and a penalty will be levied.
