Income Tax Notice: The Income Tax Department keeps an eye on cash transactions exceeding the prescribed limit. Income Tax Department notice may come on cash transactions exceeding a limit. Let us know about it in detail.
Income Tax Notice: In the digital age, cash transaction has become easier and faster than before. The government has also made digital transactions mandatory for most payments to keep an eye on financial transactions. If you are transacting money with someone online, then you need to be cautious so that Income Tax notice does not come. Income Tax Department notice may come on cash transactions exceeding a limit.
Let us tell you that if banks do any big cash transactions in fixed deposits, savings accounts, mutual funds, real estate, then the institution has to give this information to the Income Tax Department. If you are also one of those people who do more cash transactions instead of digital ones, then you may find yourself in trouble.
Credit Card Bill Payment- Credit Card has made payment easy and hassle free for people. However, users should take care that they do not exceed the limit of Rs 1 lakh while paying their card bills. If the cash limit is exceeded then the IT department can give you a notice.
Bank Fixed Deposit- Bank FD allows cash deposits up to Rs 10 lakh. If you make an FD of more than Rs 10 lakh, you may get a notice.
While dealing in real estate- trading property, individuals should be aware that cash transactions of more than Rs 30 lakh are not advisable. If you do property transactions worth more than Rs 30 lakh in cash, then it may come under the close watch of the Income Tax Department.
Mutual Fund/Share Market- In recent times, a huge jump has been seen in the number of demat account holders in India. However, people investing in the stock market should know that the limit of cash investment should not exceed Rs 10 lakh. If someone goes beyond the limit, it may come to the attention of the Income Tax Department, which may lead to opening of his final Income Tax Return (ITR). Therefore, you should keep in mind that do not pay more than Rs 10 lakh in cash in shares, mutual funds or debentures in a year.
