Income Tax Department has become alert about cash transactions. If any transaction is done beyond a limit, be it offline or online, the Income Tax department sends a notice to your home. In such a situation, let us tell you which cash transactions you should avoid.
Income Tax Notice: If you also deal in cash then this news is useful for you. Actually, the Income Tax Department has become very alert about cash transactions these days. In such a situation, doing transactions in more cash will not be free from danger for you. The Income Tax Department keeps an eye on certain types of transactions. The thing to note here is that if any transaction, whether offline or online, is done beyond a limit, the Income Tax department sends a notice to your home. In such a situation, today we are going to tell you about 5 such cash transactions due to which you can get an Income Tax notice.
Income tax is keeping an eye on these 5 transactions
1. Bank FD: If you deposit Rs 10 lakh or more in FD once or more than once in a year, then the Income Tax Department can ask you about the source of the money. In such a situation, if possible, deposit most of the money in FD through online medium or through cheque.
2. Bank Savings Account Deposit: If a person deposits Rs 10 lakh or more in cash in one or more accounts in a financial year, then the Income Tax Department can question about the source of the money. The maximum limit in current accounts is Rs 50 lakh.
3. Credit card bills: Many times people pay credit card bills in cash. If you pay more than Rs 1 lakh in cash as a credit card bill at one time, the Income Tax Department can question you. If you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, you can also be asked about the source of the money.
4. Property transactions: If you make a large cash transaction with the property registrar, its report also goes to the Income Tax Department. If you buy or sell a property worth Rs 30 lakh or more in cash, the property registrar will send its information to the Income Tax Department.
5. Money invested in shares, debentures: If you make large cash transactions in shares, mutual funds, debentures and bonds, you may face problems. In a financial year, a maximum cash transaction of up to Rs 10 lakh can be done in such instruments. So if you have any plans to invest in any of these, then the first thing to keep in mind is that you do not have to use large amounts of cash.
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