Income Tax Notice: Income Tax Department usually keeps an eye on every big transaction. Wherever it suspects something, you can get a notice. So be alert before making any transaction. If you deposit Rs 10 lakh in cash in the bank, the Income Tax Department can immediately inquire.
Income Tax Notice: Now the payment methods have changed as compared to earlier. Now is the era of digital. The trend of online payment has increased. In such a situation, tracking the payment has also become easier. The more things are becoming modern, the risk of theft and fraud has also increased. Therefore, the government has set different rules regarding the use of these technologies. Similarly, to prevent fraud and corruption, some rules have been set by the Income Tax Department regarding transactions and payments.
Usually Income Tax keeps an eye on every transaction. How much money are you paying online or buying some goods through cash. The Income Tax Department keeps an eye on all of them. If a person pays a credit card bill in cash of Rs 1 lakh or more, then the Income Tax Department has the right to investigate this transaction. In such a case, an income tax notice can be sent. Apart from this, a fine or penalty can also be imposed.
1 – Depositing Rs 10 lakh cash
If you spend more than Rs 2 lakh annually on a credit card, then the Income Tax Department may notice you. Big transactions will always be on the Income Tax radar. On the other hand, if you deposit more than Rs 10 lakh in cash in your bank account, then the Income Tax Department may notice you. For this, you may get a notice from the department. Giving a notice does not mean that you have evaded tax. However, the Income Tax Department will definitely ask you where you got so much money from. If your answers do not match, the department can impose a fine.
2 – Shares and Mutual Funds
If you invest more than Rs 10 lakh in any share or mutual fund, then even if you do not tell, that information will reach the tax department. After this, you may get a notice. It is not necessary that the department sends the notice immediately, but there are chances that you may come under its purview. In such a situation, you may have to give an account of your income.
3 – Cash payment while buying property
Apart from this, if you buy property worth more than Rs 30 lakh. In such a situation, it is very important to tell about its source. At some places, this limit is also Rs 50 lakh and Rs 20 lakh. If you buy property worth more than this amount, you will have to tell the department about the source of income.
4 – Spending more than Rs 2 lakh on foreign travel
If you spend more than Rs 2 lakh on foreign travel in a year, then its data reaches the Income Tax Department.
5 – 10 lakh cash FD
If you make an FD or RD of more than 10 lakh by paying cash, then the bank gives its information to the Income Tax Department. After this, Income Tax can send a notice.
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