Cash Transaction Notice: If you are a taxpayer then there is very important news for you. Your one mistake can get you a notice from the tax department. Actually, the government keeps an eye on all your financial transactions. If you do cash transactions more than a limit, then you can get a notice from the Income Tax Department.
Actually, the Income Tax Department has to give information to banks, mutual funds, brokerage houses and property registrars if someone does big cash transactions. In such a situation, if you also do more cash transactions than digital, then you are making a mistake. Let us know about some such cash transactions that can get you the notice of Income Tax Department.
If you buy or sell property worth 30 lakhs or more in cash, then you will be informed about this to the Income Tax Department. In such a situation, the Income Tax Department can inquire about it from you. You can also be asked about the source of your cash.
Payment of Credit Card Bill
If you also deposit the credit card bill in cash, then you can get into trouble. If you deposit your credit card bill in cash more than Rs 1 lakh in one go, then the Income Tax Department can inquire from you. If you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then you will also have to provide its source.
Buying shares and mutual funds
Be cautious if you invest in the stock market or do large amounts of cash transactions in mutual funds, debentures and bonds. If you invest more than Rs 10 lakh in these in a financial year, you can get a notice from the Income Tax Department.
Deposit in cash in FD
If you deposit more than Rs 10 lakh in fixed deposits in a year, then the Income Tax Department may ask you for information about the source of these money. You deposit money in FD digitally only, so that the income tax department will have a record of your transactions and you will not face any problem.
Do not deposit cash in bank account
The way you deposit Rs 10 lakh or more in cash in a year in fixed deposits, then you may be questioned. Apart from this, if you deposited an amount of 10 lakh or more in cash in a year in any bank or co-operative bank, then you will come under the radar of Income Tax Department. In such a situation, if you want to deposit any amount, do it online so that the department knows about your transaction.