Cash transactions: Under the rules of Income Tax, cash transactions of more than 2 lakhs have not been approved in any case. Let us know about those 10 transactions in which if the rules are ignored then the notice of the tax department can come.
The Modi government has taken all measures to promote digital transactions. Despite this, some people do not give up on their habits and use cash for every small and big work. Various types of discounts are available separately to promote online transactions. Apart from this, ATM withdrawal rules have also been tightened to reduce cash circulation. Despite this, if you use cash more, then be careful. In this article, we are going to tell you about those cash transactions which are looked after by the Income Tax Department. If you miss, the tax department can issue a notice.
If 10 lakh cash has been withdrawn or deposited from savings accounts in a financial year, then the bank shares its information with the Income Tax Department.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.
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. The bank whose FD account has more deposits than this limit, may get notice from income tax to the depositor.
If you use a credit card, avoid depositing in cash. 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. Even if the credit card bill exceeds 10 lakhs in a financial year, the tax department can issue a notice. It also includes cash transactions including digital transactions.
If a demand draft of Rs 10 lakh is made in cash in a financial year, the bank will have to share the PAN card details as it is tracked.
Apart from this, 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 an individual spends more than Rs 10 lakh on foreign tours in a financial year, then the income tax department keeps an eye on such transactions.
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 you buy a service or product, then the transaction cannot be done in cash more than 2 lakhs. If jewelery worth more than 2 lakhs has been purchased, the jewelers will have to inform the tax department. Similarly, if you give more than 2 lakhs in cash for buying a car, the car dealer has to inform the tax department.
When the tax department gets such information about an individual, it checks the return of that person. If there are discrepancies in return filing and these expenses, the tax department issues a notice.