look news india
Income Tax Notice: Even though now is the era of digital payments, many people still find it easier and better to do cash transactions. However, many people also do cash transactions because they want to stay away from the radar of the Income Tax Department. Well, if you do small shopping with cash then there is no problem, but there are 5 high value cash transactions, which can prove costly for you. As soon as the Income Tax Department gets wind of this, you may get a notice (Income Tax Note). Let us know about them.
1- Depositing cash in bank account
According to Central Board of Direct Taxes (CBDT) rules, if someone deposits Rs 10 lakh or more in cash in a financial year, it is reported to the Income Tax Department. This money must have been deposited in one or more accounts. Now because you are depositing more money than the prescribed limit, the Income Tax Department may ask you about the source of this money.
2- Depositing cash in fixed deposit
Just as questions arise on depositing more than Rs 10 lakh in a bank account in a financial year, the same happens with FDs. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, the Income Tax Department may ask you questions about the source of the money if there is any doubt.
3- Big property transaction
If you have made a cash transaction of Rs 30 lakh or more while purchasing a property, then the property registrar will definitely inform the Income Tax Department. In such a situation, due to such a big transaction, the Income Tax Department may ask from where you brought the money.
4- Payment of credit card bill
If your credit card bill is Rs 1 lakh or more and you pay it in cash, you may still be asked about the source of the money. At the same time, if you pay Rs 10 lakh or more in any financial year in any way, then the Income Tax Department can question you as to where the money came from.
5- Buying shares, mutual funds, debentures or bonds
If large amounts of cash are used to buy shares, mutual funds, debentures or bonds, this also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakh or more, then its information reaches the Income Tax Department. In such a situation, the Income Tax Department may ask you from where you brought the cash.