Income Tax Notice: The Income Tax Department has identified some such transactions. On which the department pays special attention. In such a situation, if you also do some such transactions in a year, then you are sure to get an Income Tax notice.
It is necessary to inform the department about cash transactions above the limit in banks, mutual funds, brokerage houses and property registrars.
Some people make mistakes while trying to save income tax. Later they have to pay for it. In such a situation, do some transactions under the Income Tax Act. This will never put you in trouble. Actually, the Income Tax Department keeps a close watch on long transactions. As soon as you make any cash transaction, you will immediately come under the Income Tax radar. After this, the chances of escaping are very less. In such a situation, we are telling you about some such transactions which should never be done within a year. If there is a need for a transaction, then inform the Income Tax Department about this.
Actually, if a bank, mutual fund, brokerage house and property registrar makes cash transactions above the prescribed limit, then they have to inform the Income Tax Department about it. Let us know about 6 such transactions, which can land you in trouble. Due to which the Income Tax Department can issue a notice.
You may get a notice on FD of more than 10 lakhs
If you deposit more than Rs 10 lakh in a year in a fixed deposit (FD), then in such a situation you can get a notice from the Income Tax Department. Whether it is deposited in one go or in many times or whether it is a cash transaction or digital. The Income Tax Department can ask you about the source of this money and can send you a notice. In such a situation, most of the money should be deposited in FD through check. If an amount of Rs 10 lakh or more is deposited in cash in a financial year, banks have to inform CBDT about it.
Cash deposit in bank account
CBDT has made a rule that if you deposit cash of Rs 10 lakh or more in one or more accounts of a bank or a co-operative bank in a financial year, then the bank or co-operative bank will have to inform the Income Tax Department about it. This rule is just like FD. Current accounts and time deposits are excluded from this. If you deposit more than this fixed limit, the Income Tax Department can question the source of the money.
Property Transactions
If a person buys or sells property worth Rs 30 lakh or more, then in such a situation the property registrar has to give this information to the income tax officials. In such a situation, the Income Tax Department can ask you where did you get the money for such a big transaction (High Value Transaction)? Many such questions can be asked.
Purchase of shares, mutual funds, debentures and bonds
If you make large cash transactions in shares, mutual funds, debentures and bonds, then you may get into trouble in such a situation. Actually, if a person purchases shares, mutual funds, debentures and bonds in an amount of Rs 10 lakh or more in a financial year, then companies or institutions have to give information about it to the Income Tax Department.
There may be problems even if you pay the credit card bill in cash
If your credit card bill is more than 1 lakh. In such a situation, if you pay this bill in cash at once. Even then you can get a notice. On the other hand, if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then you can also be asked about the source of the money. If you have done something like this, then you will have to give information about it in your income tax return.
Related Articles:-
- EPFO has simplified the rules for those changing jobs, now you will not have to do this…
- H1B Visa Final Rule: Final rule for H-1B work visa for Indian professionals implemented, Major key changes
- Indian’s Hydrogen train: Country’s first hydrogen train will run between these 2 cities of India
- TRAI New Rule: Jio, Airtel, Vi and BSNL SIMs will remain active even without recharge…
- School Reopen: Schools will open here from Today, strict restrictions on timing. key Details Inside
