Money Transaction Limits by Income Tax: The Income Tax Department monitors the cash transactions of every person. Especially high-value cash transactions are kept an eye on. The Income Tax Department has set a limit for high value cash transactions. According to the Income Tax Department, you will have to give information about crossing the fixed limit.
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Bank Transaction Limits: In this fast-paced world, every day people transact money online or through banks. But many times high value money transactions become a problem for people and the Income Tax Department lags behind. The Income Tax Department has also suggested a method to avoid this type of problem.
The Income Tax Department monitors the cash transactions of every person. Especially high-value cash transactions are kept an eye on. The Income Tax Department has set a limit for high value cash transactions. As soon as you cross this limit, the Income Tax Department comes into focus, which can become a problem for you.
Limit for savings and current accounts
According to the limit of high-value cash transactions set by the Income Tax Department, transactions of more than Rs 10 lakh should not be made from a savings bank account in a financial year. At the same time, if you make transactions of more than Rs 50 lakh from current accounts, you come in the eyes of the Income Tax Department.
Income tax sends notice
If you exceed the cash transaction limit set by the Income Tax Department, then the department scrutinizes your records with the help of government agencies and financial institutions. After this it issues you a notice. This process can cause great trouble for you.
How to avoid crossing the limit
According to the Income Tax Department, you will have to inform about exceeding the fixed limit. Along with this, while filing income tax, you will have to mention that your cash transaction can cross Rs 10 lakh in a financial year. If you mention this in the income tax form in advance, you will be saved from trouble.
Income tax will send notice even after doing this
- Fixed Deposit account should not exceed the limit of Rs 10 lakh.
- Credit card bill payment should not exceed Rs 1 lakh. There should not be any transaction of Rs 10 lakh in the financial year.
- There should not be sale or purchase of immovable property worth more than Rs 30 lakh.
- The limit for cash transactions related to investments in mutual funds, stocks, bonds should not exceed Rs 10 lakh in a financial year.
- Foreign exchange sales in a financial year should not exceed Rs 10 lakh or more.
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