Where is the income tax notice brought? If you deal mostly in cash, then now you should be alert and careful. You may be under the eye of the Income Tax Department. Now the department is giving special notice to those who deal in cash. The departments are keeping an eye on your every transaction, on which you are doing big cash deals. If you do this, then you must read this news once. What rules have been made regarding this.
tightened the rules
The Income Tax Department has shown strictness regarding cash investment in Bank, Mutual Fund House, Broker Platform, Property etc. If you do large cash transactions, then they will have to inform the Income Tax Department about it. We are going to tell you about some such transactions. Which can sometimes create a big problem for you.
Cash transaction of Rs 10 lakh
If you do cash transactions in any shares, mutual funds, debentures and bonds, then you can do cash transactions up to Rs 10 lakh in a financial year. If you invest money in it, do not use large amounts of cash. If you still do this, then the department can send a notice to you.
10 lakh rupees investment in FD
If you are depositing Rs 10 lakh or more in FD once a year or more than once, the Income Tax Department may ask you to provide information about the source of the money. If possible, deposit most of the money in FD through online medium or through cheque.
10 lakh deposited in the accounts
If a person deposits an amount of Rs 10 lakh or more in cash in one of his accounts or more than one account in a financial year. So the Income Tax Department can ask for information about the money. The maximum limit in current accounts is Rs 50 lakh.
Paying credit card bill in cash
If you deposit your credit card bill in cash. If you deposit more than Rs 1 lakh in cash as a credit card bill at one go, then the Income Tax Department can take information from you. On the other hand, even if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, you may be asked about the source of the money.
Buying or selling property in cash
If you do a big transaction in cash with the property registrar, then its report goes to the Income Tax Department. If you are buying or selling a property worth Rs 30 lakh or more in cash, then the information is sent to the Income Tax Department on behalf of the property registrar.