Income Tax Notice: Income tax notice will not come to your home, just keep these things in mind

Income Tax: People take various measures to avoid notice from the Income Tax Department. Still, they commit such mistakes knowingly or unknowingly that they get income tax notices.

We are telling you about some such transaction rules, keeping in mind which you can avoid the notice of Income Tax Department.

How much cash can you deposit?

Many people think that they can deposit any amount of money in their bank account. but it's not like that. Central Board of Direct Taxes (CBDT) rules say that if a person deposits Rs 10 lakh or more in cash in a financial year, the information will have to be reported to the Income Tax Department.

This amount can be deposited in one or more accounts, which will be opened in your name only. Since, you are depositing money more than a limit, the Income Tax Department may ask where this money has come from. Its purpose is to know whether money has been earned illegally.

Be careful when buying a big property

Even if you make any big transaction while buying a property, the Income Tax Department can ask you about it. If you have done a cash transaction of Rs 30 lakh or more, then the property registrar gives this information to the Income Tax Department. In such a situation, the Income Tax Department can ask about the source of the money. To avoid this, you should keep the necessary documents ready.

Keep an eye on investments too

At present, stock market and mutual funds (MF) have emerged as preferred investment options. If you have done a transaction of Rs 10 lakh or more in the stock market and MF as well as for purchasing debentures or bonds, then this information is received by the Income Tax Department. Even in this situation, the department may ask you from where you got such a huge amount of money.

Question on credit card bill also

If you use your credit card excessively and your bill exceeds Rs 1 lakh or more, then you need to be alert. If you pay bills in cash, you may be asked about the source of the money. If Rs 10 lakh or more is paid in any way in a financial year, questions may be asked about the source of the money.