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Income Tax Notice: If you also transact money 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 comes in the mind of many people that can an income tax notice come on cash transactions as well? Let us know how much cash transaction you can do in your family.
Does Income Tax Department send notice?
According to tax experts, if money is given every month for household expenses or 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 get 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 there will be a tax liability on the income. In other words, the income earned on the investment 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 the Income Tax Act, a penalty can be imposed on cash transactions exceeding Rs 20,000. However, exemptions are 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. Exemptions are given in these cases. In simple words, the wife will not get 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 there will be a tax liability on the income.