Income Tax Notice: The era is of digital transactions and the government keeps an eye on all your financial transactions, in such a situation, you can get a notice from the Income Tax Department for depositing money in cash. Let us know under which circumstances the Income Tax Department can send a notice to you.
Cash Transaction Notice: If you also pay tax, then definitely read this news. Income tax department can send you notice of tax department just because of one mistake. The Income Tax Department monitors all the financial transactions of every citizen. In such a situation, if you ignore your transaction, then you may suffer a big loss. Income Tax Department has to give information to banks, mutual funds, brokerage houses and property registrars if someone does big cash transactions. Let us know when and where you need to be alert.
1. Keep an eye on Credit Card
According to income tax rules, if you deposit the credit card bill in cash, then ignoring it can cause problems for you. If you deposit your credit card bill in cash for more than Rs 1 lakh at a time, then the Income Tax Department can send you a notice. Accordingly, if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then you will have to show the source of the same.
2. Pay attention to the purchase of property
The Income Tax Department keeps a close eye on your purchases. According to the Income Tax rules, if you buy or sell a property worth Rs 30 lakh or more in cash, then you will have to inform the Income Tax Department about it. You will also have to give information about the source of this cash, otherwise you may get a notice.
3. Information will also have to be given on FD
The Income Tax Department is also keeping an eye on your deposits. If you deposit more than Rs 10 lakh in a fixed deposit in a year, then the Income Tax Department will have to inform you about its source. Not only this, you deposit money in FD digitally, so that the Income Tax Department will have a record of your transaction.
4. Attention cash depositors!
There is also an alert for those who deposit cash in the bank. If you have deposited an amount of 10 lakh or more in cash in a bank or co-operative bank in a year, then the income tax department may come to your notice. You deposit any kind of amount online so that the department knows about your transaction.
5. Explain the purchase of shares and mutual funds
The Income Tax Department also keeps an eye on your investments. If you are an investor in the stock market, then there is important news for you. Be cautious if you deal in large amounts of cash in mutual funds, debentures and bonds. Under this, if you invest more than Rs 10 lakh in a financial year, then the Income Tax Department can give you a notice.
