- Advertisement -
Home Personal Finance Income Tax Rules: Big Alert! 137% penalty will be imposed if this...

Income Tax Rules: Big Alert! 137% penalty will be imposed if this work is done in cash payment, know rules here

0
Tax Knowledge: There is no limit to keep cash at home, then why does income tax keep an eye, know the reason?

Income Tax Notice: Most of the people in our country prefer to transact in cash only. But transactions in cash can be done only up to a limit. The government has also made rules for this and if you ignore them, you can face a penalty of up to 137%.


Cash limit at home?

– There is no limit for keeping cash in the house
– It is necessary to tell the source of the cash kept in the house
– There can be problems if you do not tell the source
– Penalty up to 137% is possible if caught

Cash deposit limit in bank?

– There is no limit to deposit cash in the bank
– Rules are regarding giving information about the amount deposited
– Some rules have been fixed regarding savings account
– Deposited Rs 2 lakh or more at one go
– Rs 10 lakh in a year Deposited or more
– in this case the name will go in the Annual Information Report
– for current account this limit is Rs 50 lakh

Tax on withdrawing cash from bank?

– No tax at present on cash withdrawal from bank accounts
– In this budget announcement was made regarding tax on cash withdrawal
– 2% TDS will be deducted on cash withdrawal above Rs 1 crore
– 2% TDS will be deducted by bank or post office on withdrawal

Get cash on selling property?

– There is a limit on cash withdrawal on selling the property
– You can only transact in cash up to Rs.20,000
– 100% penalty for taking more than Rs.20,000 in cash
– You can transact through check

Cash payment limit?

– The limit of payment in cash is also pre-fixed
– Rules fixed for personal expenses-business expenses
– Cash payment up to Rs 2 lakh for personal expenses
– Possible to give cash up to Rs 10,000 for business

PAN on deposits above Rs 50,000?

– Depositing more than Rs 50,000 in cash in savings account
– In this case you need to give PAN card number
– Making pay order or demand draft in cash
– In case of pay order-DD also PAN number has to be given

Cash spent on marriage

– There is no limit on spending cash in marriage
– There are rules regarding the use of cash in marriage
– Purchase of more than 2 lakh rupees from one person
– In this case your name will go to IT
– Department can ask the source if needed
– Failure to disclose will attract 78% tax and interest

Cash gift in marriage

– Gift received on marriage is not taxed
– Whether the gift is given by a relative or received from somewhere else
– Rule is fixed in section 56 of the Income Tax Act
– Problem on gift more than Rs 2 lakh in
cash penalty possible

Can I gift in cash?

– You can give gifts in cash up to the limit
– You can gift cash less than Rs.2 lakh
– 100% penalty on cash gifts above Rs.2 lakh
– Exemption of Rs.2 lakh only for
relatives Cash gift from someone other than
– cannot take gift more than 50,000 rupees in this case
– if taken more than 50,000 rupees then tax will have to be paid

Loan in cash-

– Bank sends the loan amount directly to the account
– If you are taking loan in cash, then take only up to Rs.20,000
– 100% penalty if you take cash loan more than Rs.20,000

Donation in cash-

If you are donating in cash, then give only up to Rs 2000.
If you donate more than Rs 2000 in cash, there is no exemption under 80G
. Tax exemption is available on donations under 80G in IT.

Can I buy medical insurance in cash?

– Tax exemption is available on taking medical insurance policy
– Tax exemption of Rs 25,000 is available under section 80D
– Tax exemption of Rs 50,000 is available for senior citizens
– You paid cash for medical insurance
– You do not get this tax exemption under 80D will get

Notice from IT department-

– You have received a notice regarding cash deposit
– Income Tax Department has sent a notice on cash transaction
– Give your and family’s cash flow statement
– Reply giving the exact source of cash

- Advertisement -DISCLAIMER
We have taken all measures to ensure that the information provided in this article and on our social media platform is credible, verified and sourced from other Big media Houses. For any feedback or complaint, reach out to us at businessleaguein@gmail.com

Exit mobile version