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News India Live, Digital Desk: Income Tax Notice: Often we think of depositing cash in the bank simultaneously. But do you know that there is also a ‘Laxman Rekha’ to deposit cash in your savings account? If you have crossed this line by mistake, then you can directly come to the eye of the Income Tax Department and you can get a huge notice.
Come, let us understand this important rule in easy language so that your hard earned money is safe.
What is this affair of ₹ 10 lakh?
According to the rules of the Income Tax Department, you mix all your savings accounts in a financial year (Financial Year – 1 April to 31 March) Cash over 10 lakh rupees can not mount.
It is very important to note that this limit is not for your bank account, but in your name. All savings accounts (Whether they are in different banks).
So what if the limit has crossed?
The moment in which the total cash deposit in your accounts will cross Rs 10 lakh, your bank will immediately send its information to the Income Tax Department. After this, the department will ask you for this money.
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Notice will come home: The Income Tax Department will send you a notice and ask, “Sir, where did this money come from?”
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Will have to give account: You have to prove that this money is your legitimate earnings and tax has been paid on it.
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If not given the account… If you are not able to tell the source of money, then it can be difficult. The Income Tax Department considering this amount as your ‘undeclared income’ on it Tax, fine and interest up to 60% Can put, which will make your deposit capital about half.
Why are these rules made?
The aim of the government is not to disturb anyone, but to prevent the use of black money in the country and keep an eye on large cash transactions.
Advice for you:
Always try to use checks, net banking, UPI or other digital methods for large transactions. It is also safe and also protects you from the mess of the Income Tax Department. Remember, information is rescue!
