Cash Transaction Notice: Today’s era is of digital transaction, because it is very easy and fast. The government has also made digital transactions mandatory for most payments so that financial transactions can be tracked. Despite this, there is no shortage of those who pay in cash, but these people may not know that the eyes of the Income Tax Department are still on them. A notice from the Income Tax Department can come on cash transactions exceeding a limit.
Let us tell you that if someone makes big cash transactions with banks, mutual funds, brokerage houses and property registrars, then they have to inform the Income Tax Department. If you are also one of those people who do more cash transactions than digital, then you are giving yourself trouble. We are going to tell you some such cash transactions that can get you notice from the Income Tax Department.
If you buy or sell a property with a value of 30 lakhs or more in cash, then the information will be sent to the Income Tax Department on behalf of the Registrar of Property. In such a situation, the Income Tax Department can inquire about this cash deal from you, can also ask for clarification about the source of the money.
If you also deposit the credit card bill in cash, then problems may arise for you. If you deposit more than Rs 1 lakh in cash as a credit card bill at a time, then the notice of Income Tax Department can come to you. Even if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, you may still be asked about the source of the money.
If you do large amounts of cash transactions in shares, mutual funds, debentures and bonds, then be alert because investing more than Rs 10 lakh in these in a financial year can bring you a call from the Income Tax Department.
Depositing in cash in FD
If you deposit more than 10 lakh rupees in a year in fixed deposits, whether they are deposited in one go or in multiple times. The Income Tax Department may ask you about the source of these funds. Therefore, it would be better if you deposit money in FD digitally, so that the Income Tax Department will have a record of your transactions and you will not have any problem.
deposit money in bank account
Just as the Income Tax Department may ask you questions if you deposit Rs 10 lakh or more in cash in a year in a fixed deposit, similarly if you have deposited 10 lakh or more in cash in a year in any bank or co-operative bank. If you deposit then you will come on the radar of Income Tax Department.