Will income tax notice be sent on cash transactions between father-son and husband-wife? Know details here

Income Tax Notice: If you also do money transactions between father-son or husband-wife, then this news is useful for you. Actually, Income Tax keeps an eye on our every transaction. In such a situation, a question arises in the minds of many people whether income tax notice can come on cash transactions also? Let us know how much cash transaction you can do in your family.

Does the Income Tax Department send notices?

According to tax experts, if money is given every month for household expenses or if 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 husband’s income. The wife will not receive any notice from the Income Tax Department for this amount. But, if the wife repeatedly invests this money somewhere and gets income from it, then tax will be payable on the income. In other words, the investment income will be calculated as the wife’s income on a year-to-year basis, on which tax will have to be paid.

Under Section 269SS and 269T of Income Tax, penalty can be imposed on cash transactions exceeding Rs 20,000. However, relaxation is also 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 repeatedly invests this money somewhere and earns income from it, then tax will be payable on the income.