The Income Tax Department keeps an eye not only on your digital transactions but also on cash transactions. In such a situation, if you transact in cash above a certain limit, you may have to face an Income Tax notice.
If you are a taxpayer, then you should be careful about your financial transactions. In fact, any kind of mistake or small mistake can bring an income tax notice to your house. Let us tell you that the Income Tax Department keeps an eye on all your financial transactions. For this, many modern tools are also being used by the department. In such a situation, if the department sees a big difference between your income and expenditure in the transaction, then an income tax notice can come to your house.
The Income Tax Department keeps an eye not only on your digital transactions but also on cash transactions. In such a situation, if you transact in cash above a certain limit, then you may have to face an Income Tax notice. Apart from this, there are some transactions which, if done in cash, can also lead to you facing an Income Tax notice. Today we are going to tell you about such transactions.
Deposit in bank savings account
If you deposit cash of Rs 10 lakh or more in your savings account in a financial year, then you may have to answer to the Income Tax for this. You will have to tell the Income Tax the source of this cash.
Making FD with cash
If you make an FD of Rs 10 lakh or more in cash in a bank, then you may have to answer for it to the Income Tax.
Paying credit card bill with cash
If your credit card bill is Rs 1 lakh or more and you are repeatedly paying this bill in cash, then you may have to face an income tax notice.
Invest in cash in shares or mutual funds
Even if you invest more than Rs 10 lakh in cash in the stock market or mutual funds, you may still come under the radar of the Income Tax Department.
Payment for property
Even while buying property, you have to disclose the source of income if you make payment in cash. In urban areas, this limit is Rs 50 lakh. In rural areas, this limit is Rs 20 lakh, which means if you buy property worth more than this amount in cash, you will have to give its information to the Income Tax Department.
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