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Cash Transactions Notice: Big news! Income tax notice will come on these 5 cash transactions, new rule implemented

Cash Transaction Latest Update: There are many such transactions which are monitored by Income Tax. If you do large cash transactions with banks, mutual funds, brokerage houses and property registrars, then they will have to inform the Income Tax Department.

New Cash Transaction Rule: In the last few years, the Income Tax Department and various investment platforms like banks, mutual fund houses, broker platforms etc. have tightened the rules of cash transactions for the general public.

Now these investment and loan giving institutions allow cash transactions only up to a certain limit. If this is violated, the Income Tax Department can send a notice.

There are many such transactions which are monitored by Income Tax. If you do large cash transactions with banks, mutual funds, brokerage houses and property registrars, then they will have to inform the Income Tax Department.

Bank fixed deposit

Cash deposit in bank FD should not exceed Rs 10 lakh. The Central Board of Direct Taxes (CBDT) has announced that banks will have to disclose whether individual deposits in one or more fixed deposits exceed the prescribed limit.

Savings account deposit

The limit of cash deposit in bank account is Rs 10 lakh. If a savings account holder deposits more than Rs 10 lakh during a financial year, the Income Tax Department can send an Income Tax Notice. Meanwhile, cash deposits and withdrawals into a bank account that cross the Rs 10 lakh limit in a financial year must be disclosed to the tax authorities. In current accounts, the cap is Rs 50 lakh.

Credit card bill payment

According to CBDT rules, cash payment of Rs 1 lakh or more against credit card bill should be reported to the Income Tax Department. Additionally, if Rs 10 lakh or more is paid in a financial year to settle credit card bills, the payment must be disclosed to the Income Tax Department.

Sale or purchase of real estate

The property registrar will have to inform the tax authorities about any investment or sale of immovable property worth Rs 30 lakh or more. Therefore, in the purchase or sale of any real estate property, taxpayers are advised to report their cash transactions in Form 26AS as the Registrar of Properties will definitely report the same.

Investing in shares, mutual funds, debentures and bonds

Investors investing in mutual funds, stocks, bonds or debentures should ensure that their cash transactions in these investments do not exceed Rs 10 lakh in a financial year.

The Income Tax Department has prepared the Annual Information Return (AIR) Statement of Financial Transactions to detect high value cash transactions of taxpayers. On this basis, the tax authorities will collect details of unusually high value transactions in a particular financial year.

Shyamu Maurya
Shyamu Maurya
Shyamu has done Degree in Fine Arts and has knowledge about bollywood industry. He started writing in 2018. Since then he has been associated with Informalnewz. In case of any complain or feedback, please contact me @informalnewz@gmail.com
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