This work is not to be done in cash or else the notice of income tax, know the complete rule

Online transactions have been given a lot of boost in the country. But there are still many people who consider it easiest to do transactions in cash. In such a situation, if you do big cash transactions, then income tax can answer your question. There are many such transactions, which are always under the watch of Income Tax. If you do large cash transactions with banks, mutual funds, brokerage houses and property registrars, they have to inform the income tax department.

The Income Tax Department has become very strict these days and keeps an eye on many types of transactions. In such a situation, let us know about 5 such transactions, which can put you in trouble.

Deposit money in bank account

If a person deposits an amount of Rs 10 lakh or more in cash from one account or more than one account in a financial year, then the income tax department can question the source of the money. Not only this, CBDT has made this rule that if you deposit a large amount of money in cash in any bank, then it will inform the bank or Income Tax Department. This rule is exactly the same as FD.

Cash Deposit in FD

If you deposit a large amount of money in FD through cash, then the bank has to inform the Income Tax Department about it. If you deposit Rs 10 lakh or more in FD in a single year or more than once, the income tax department may ask you about the source of the money. Therefore, for FD, money should be deposited through check only.

credit card bill payment

Sometimes people also deposit the credit card bill in cash. If you deposit more than Rs 1 lakh in cash credit card bills at a time, then income tax may question you. On the other hand, if you pay in cash a credit card bill of more than Rs 10 lakh in a financial year, you may still be asked about the source of the money.

Property transaction

If you do a large transaction in cash with the property registrar, then its report also goes to the Income Tax Department. If you buy or sell a property worth Rs 30 lakh or more in cash, then the property registrar will inform the Income Tax about it. In such a situation, the Income Tax Department may ask you from where the money should come to you to do such a huge transaction in cash.

Purchase of Shares, Mutual Funds, Debentures and Bonds

If you do large amount of cash transactions in shares, mutual funds, debentures and bonds, then you may face problems. The maximum cash transaction that can be done in such instruments in a financial year is up to Rs 10 lakh. So if you have any plans to invest in any of these, then the first thing to keep in mind is that you do not have to use large amounts of cash.