Income Tax Department: To reduce public cash transactions related to various investments such as income tax department, bank mutual fund companies, brokerages ..
Income Tax Department: The Income Tax Department has tightened the rules for various investment platforms such as banks, mutual fund companies and brokerages to reduce cash transactions. Imposed restrictions on cash transactions. Violations of these rules may result in notices from the Income Tax Department. However here are five cash transactions that are likely to send notices.
Savings, Current Account:
The cash deposit limit in an individual savings account is Rs. 1 lakh. Income tax notices are likely to be sent if more than Rs 1 lakh is deposited in a savings account. Similarly, for current accounts, the limit is Rs 50 lakh. Notices sent by the Income Tax Department must be explained if this limit is violated.
Bank Fixed Deposit (FD):
Fixed deposit is a good option in small investment schemes.
Cash deposit in bank fixed deposit should not exceed Rs.10 lakhs. A bank depositor should not deposit more than that in one’s bank FD account.
In case of credit card bill payments ..
Credit card bill payment should not exceed the limit of Rs. Violation of this cash limit in credit card bill payment may result in the Income Tax Department sending a notice. The answer to that also has to be said.
Mutual fund, stock market, bond.
Those who invest in mutual funds, stocks, bonds and debentures should ensure that the cash investment does not exceed Rs 10 lakh. If this cash limit is exceeded, the Income Tax Department will check your final income tax return.
Real Estate:
When buying or selling a property, if there are any cash transactions exceeding the limit of Rs 30 lakh in the real estate contract, the Income Tax Department has to be informed. The IT department does not encourage cash transactions beyond that. However, the IT department has to be vigilant when making large amount of cash transactions in the light of the regulations. This is because the Income Tax Department is scrutinizing it from time to time. With current technology the details of transactions that go beyond the limit are easily known.
