Income tax: Do not do these 5 transactions even by mistake, otherwise income tax notice will come home!
In the internet world, we choose the option of online payment for many works. While most people use UPI payment, there is also a section which uses cash. It is important to note that if any transaction, whether offline or online, exceeds a limit, the Income Tax Department sends a notice to the house. Today we are going to tell you how much we can transact. What is its limit and what can be done to avoid IT notice?
1- Depositing cash in the bank account:
According to the rules of the Central Board of Direct Taxes (CBDT), if a person deposits Rs 10 lakh or more in cash in a financial year, then it has to be reported to the Income Tax Department. Even if you are using more than one account, if someone is depositing money more than the prescribed limit, the Income Tax Department may ask you for information about the source of the money.
2- Depositing cash in fixed deposits.
The bank can inquire on transactions of Rs 10 lakh or more. The same rule applies to transactions in FD. If someone deposits more than Rs 10 lakh in FD in a financial year, the Income Tax Department can ask them about the source of the money.
pc: The Financial Express
3- Buying shares, mutual funds, debentures or bonds
Many people consider investing in shares, mutual funds, debentures or bonds to be a good option. Such investments can also develop the habit of saving money in the investor, but if one uses large amounts of cash to buy shares, debentures or bonds, or mutual funds, it also alerts the Income Tax Department.
4- Payment of credit card bill:
If your monthly credit card bill is more than Rs 1 lakh and you want to pay it in cash, then the Income Tax Department may ask you about the source of your money. If you make a payment of Rs 10 lakh or more in a financial year through any medium, online or offline, the Income Tax Department may question you.
5- Property related transactions:
If you are doing cash transactions of Rs 30 lakh or more while buying property, then be cautious of the Income Tax Department.
