Income Tax: The Income Tax Department has become very cautious about cash transactions these days. For the last few days, many platforms like Income Tax Department, banks, mutual fund houses, broker platforms have tightened the rules regarding cash transactions of the general public. All this has put a limit for cash transactions. If you do not follow the rules even a little, then the Income Tax Department can issue a notice to you.
Apart from this, if someone is a stock market investor and he invests through demand draft using cash, then the broker will report the same in his balance sheet. Here we will tell you about those 5 transactions, due to which you can get income tax notice.
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.
credit card bill payment
Credit cards have made it very easy for people to pay. However, users should take care that they do not exceed the limit of Rs 1 lakh while paying their card bills. If the cash limit is exceeded, the IT department can give you a notice.
Tax Planning: You will not get this tax exemption on home loan from April 1, there is still a few days to take advantage
bank fixed deposit
Bank FDs are allowed to deposit cash up to Rs 10 lakh. If you make an FD of more than Rs 10 lakh, then you can get a notice.
real estate
While getting the property in their name, individuals should be aware that cash transactions of more than Rs.30 lakhs are not appropriate. If you do a property transaction of more than Rs 30 lakh in cash, then it can come under the watchful eye of the Income Tax Department. 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.
mutual fund/stock market
In recent times, there has been a huge jump in the number of demat account holders in India. However, people investing in the stock market should know that the cash investment limit should not exceed Rs 10 lakh. If someone goes beyond the limit, then it can get the attention of the Income Tax Department. By which his final Income Tax Return (ITR) can be opened. Therefore, do not pay more than Rs 10 lakh in cash in a year in shares, mutual funds or debentures.
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