Under the rules of Income Tax, cash transaction of more than 2 lakhs is not allowed in any case. In which if the rules are ignored, then the notice of the tax department can come.
- If 10 lakh cash has been withdrawn or deposited from savings accounts in a financial year, then the bank shares its information with the Income Tax Department. It does not include digital transactions. This cash limit for current account is Rs 50 lakh.
- In a financial year, if more than 1 lakh cash is deposited in the form of credit card bill, then its information is given to the tax department. If the credit card bill exceeds 10 lakhs in a financial year. This includes cash transactions including digital transactions.
- If more than 10 lakh is deposited in fixed deposits in a financial year, then its information is shared with the Income Tax Department. Apart from cash transactions, it also includes digital transactions and transactions through check books.
- If you invest more than 10 lakhs in shares in a financial year, the company gives this information to the tax department. This includes both online and offline investments. Similarly, this transaction can be tracked even if you invest more than 10 lakhs in mutual funds.
- If you invest more than 30 lakhs in real estate, then the registrar gives this information to the tax department. This includes both cash and digital transactions.
- If jewelery worth more than 2 lakhs has been purchased, the jewelers will have to inform the tax department.
- If you give more than 2 lakhs in cash on the purchase of a car, the car dealer has to inform the tax department.
READ REGULAR BUSINESS NEWS? CLICK HERE TO DOWNLOAD