Income Tax Department has shown strictness on the rules of cash transactions for the general public. Now if you make any transaction or investment of more than Rs 10 lakh, then the department keeps an eye on you. Let us know about it in detail.
Income Tax Notice: If you mostly deal in cash, then you should be cautious and careful now. The Income Tax Department may be keeping an eye on you. Now the department is noticing those who deal in cash in a special way. The department is keeping an eye on your every transaction, on which you are doing big cash deals. If you do this, then you must read this news once. What rules have been made in this regard.
Rules made strict
The Income Tax Department has shown strictness regarding cash investment in banks, mutual fund houses, broker platforms, property etc. If you make large cash transactions, then they will have to inform the Income Tax Department about it. We are going to tell you about some such transactions. Which can sometimes create big problems for you.
Cash transactions of Rs 10 lakh
If you make cash transactions in any shares, mutual funds, debentures and bonds, then you can make cash transactions of up to Rs 10 lakh in a financial year. If you invest money in this, then do not use large amounts of cash. If you still do so, then the department can send you a notice.
Investing Rs 10 lakh in FD
If you are depositing Rs 10 lakh or more in FD once or more than once a year, then the Income Tax Department can ask you for information about the source of the money. If possible, deposit most of the money in FD through online medium or through cheque.
Rs 10 lakh deposited in accounts
If a person deposits Rs 10 lakh or more in cash in one account or more than one account in a financial year. Then the Income Tax Department can ask for information about the money. The maximum limit in current accounts is Rs 50 lakh.
On paying credit card bill in cash
If you deposit the credit card bill in cash. If you deposit more than Rs 1 lakh cash as credit card bill in one go, then the Income Tax Department can take information from you. On the other hand, if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then also you can be asked for the source of the money.
Buying or selling property in cash
If you make a big transaction in cash with the property registrar, then its report goes to the Income Tax Department. If you are buying or selling a property worth Rs 30 lakh or more in cash, then its information is sent to the Income Tax Department by the property registrar.
