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If you also transact money between father-son or husband-wife, then this news is useful for you. Actually, income is monitored on every transaction of ours. In such a situation, this question arises in the minds of many people that can income tax notice be received on cash transactions as well? 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 income of the husband. 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 gets income from it, then tax will have to be paid on the income. In other words, the investment income calculated on a year-by-year basis will be considered as the income of the wife, on which tax will have to be paid.
Under Section 269SS and 269T of Income Tax, a penalty can be imposed on cash transactions of more than Rs 20,000. However, exemption has also been given in many cases.
There is an exemption in these cases
For example, there is no penalty on transactions between father-son, husband-wife and some close relatives. Exemptions have been 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 gets income from it, then she will have to pay tax on the income.