The Income Tax Department keeps a close eye on these 5 transactions, even a small mistake can lead to a notice

Despite the age of digital payments, even today many people find cash transactions easier and better. However, many people also do cash transactions because they want to stay away from the radar of the Income Tax Department. Although there is no problem if you do small shopping in cash, but there are 5 such high value cash transactions, which can cost you heavily. You can get a notice as soon as the Income Tax Department gets a whiff of this. Let's know about them.

1- Deposit cash into bank account

According to the rules of the Central Board of Direct Taxes (CBDT), if a person deposits Rs 10 lakh or more in cash in a financial year, then its information is given to the Income Tax Department. This money may have been deposited in one or more accounts. Now since 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 like questions arise when you deposit more than Rs 10 lakh in a financial year in a bank account, the same happens with FDs. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, if there is any doubt, the Income Tax Department can question you about the source of the money.

3- Big property transactions

If you have made a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar will definitely inform the Income Tax Department about this. In such a situation, due to such a large transaction, the Income Tax Department can ask you where you got the money from.

4- Payment of credit card bill

If your credit card bill is Rs 1 lakh or more and you pay it in cash, you can still be asked about the source of the money. On the other hand, if you pay Rs 10 lakh or more through any medium in any financial year, the Income Tax Department can ask you where you got the money from.

5- Buying shares, mutual funds, debentures or bonds

If a large amount of cash is used to buy shares, mutual funds, debentures or bonds, it also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakh or more, its information reaches the Income Tax Department. In such a case, the Income Tax Department can ask you where you brought the cash from.