Income Tax Notice: You will find many such people who prefer to transact in cash even in the age of Digital India. Small transactions are fine, but the problem arises when big cash transactions start happening. At the slightest inkling, the Income Tax Department becomes alert and such people come under the radar of the Income Tax Department. Let us know about such 5 high value cash transactions, which can get you an Income Tax Notice as soon as you do them.
- Depositing cash in the bank account
According to the rules of the Central Board of Direct Taxes (CBDT), if someone deposits Rs 10 lakhs or more in cash in a financial year, then information about it is given to the Income Tax Department. This money may have been deposited in one or more accounts. Now since you are depositing more money than the prescribed limit, the Income Tax Department can ask you about the source of this money.
- Depositing cash in fixed deposit
Just as questions arise when you deposit more than Rs 10 lakhs in a financial year in a bank account, the same happens with FDs. If you deposit more than Rs 10 lakhs in one or more FDs in a financial year, then if there is any doubt, the Income Tax Department can question you about the source of the money.
- Big property transactions
If you have made a cash transaction of Rs 30 lakhs or more while buying a property, then the property registrar will definitely inform the Income Tax Department about this. In such a situation, due to such a big transaction, the Income Tax Department can ask where you got the money from.
- Payment of credit card bill
If your credit card bill is Rs 1 lakh or more and you pay it in cash, you can still be asked what is the source of the money. On the other hand, if you pay Rs 10 lakhs or more in any financial year by any means, then the Income Tax Department can question you as to where did you get the money from.
- Buying shares, mutual funds, debentures or bonds
If a large amount of cash is used to buy shares, mutual funds, debentures or bonds, then this also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakhs or more, then the information about it reaches the Income Tax Department. In such a case, the Income Tax Department can ask you where you brought the cash from.
