Will income tax notice come on cash transactions between father-son and husband-wife? Know the rules

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

Income tax sent notice?

According to tax experts, if you give money every month for household expenses or give money as a gift, then income tax is not levied on the wife. 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 have to be paid on the income. In other words, the investment income calculated on a year-to-year basis will be treated as the wife's income on which tax will have to be paid.

Under Section 269SS and 269T of Income Tax, penalty can be imposed on cash transactions of more than Rs 20 thousand. However, relaxation has also been given in many cases.

There is exemption in these cases

For example, there is no penalty on transactions between father-son, husband-wife and certain close relatives. Exemption has been 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 gets income from it, she will have to pay tax on the income.