Income tax keeps an eye on our every transaction. But is there any tax on transactions in cash or can income tax send a notice? Or how much cash transaction can take place between you and your wife or father-son? If you also have the same questions in your mind, then let’s know their answers…
Income tax notice: If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, income tax keeps an eye on our every transaction. In such a situation, a question comes in the mind of many people that can income tax notice come on cash transactions too? Let us know how much cash transaction you can do in your family.
Does income tax send notice?
According to tax experts, if money is given every month for household expenses or money is given as a gift, then the wife is not responsible for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not get any notice from the income tax department for this amount. But, if the wife invests this money somewhere again and again and she gets income from it, then there will be a tax liability on the income. In other words, the income on investment will be calculated on year-to-year basis as the income of the wife, on which tax will have to be paid.
Under Income Tax Section 269SS and 269T, a penalty can be levied on cash transactions of more than Rs 20,000. However, exemption is given in many cases.
Exemption is given in these cases
For example, there is no penalty on transactions between father-son, husband-wife and some close relatives. Exemption is given in these cases. In simple words, the wife will not receive any notice from the Income Tax Department for this amount. But, if the wife invests this money somewhere again and again and earns income from it, then there will be a tax liability on the income.
