Cash Transaction Notice: The era of digital transactions is because it is very easy and fast. The government has also made digital transactions mandatory for most payments so that financial transactions can be monitored.
New Delhi: Cash Transaction Notice: The era is of digital transactions, because it is very easy and fast. The government has also made digital transactions mandatory for most payments so that financial transactions can be monitored. Despite this, there is no shortage of people who pay in its cash, but these people probably do not know that the income tax department still keeps an eye on them. The Income Tax Department’s notice may come on cash transactions in excess of a limit.
Let us tell you that if someone makes a big cash transaction with the bank, mutual fund, brokerage house and property registrar, then they have to inform the income tax department. If you are also among those people who do more cash transactions than digital, then you are giving yourself a treat. We are going to tell you some cash transactions from which you can get a notice of the Income Tax Department.
Property purchase
If you buy or sell a property of 30 lakh or more value in cash, then it will be informed by the property registrar to the Income Tax Department. In such a situation, the Income Tax Department can ask you about this cash deal, and also ask for clarification about the source of the money.
Credit Card Bill Payment
If you deposit the credit card bill in cash, then there can be difficulties for you. If you deposit more than Rs 1 lakh in cash as a credit card bill at a time, then you can come to notice of Income Tax Department. Even if you pay more than 10 lakh rupees in cash in a financial year in cash, you can still be asked about the source of the money.
Purchase of shares, MF
If you make a large amount of cash transactions in shares, mutual funds, debentures and bonds, then be alert because you can get a call from the Income Tax Department if you invest more than Rs 10 lakh in a financial year.
Cash deposit in FD
If you deposit more than 10 lakh rupees in a fixed deposit in a year, whether it is deposited in one time or in several times. The Income Tax Department can ask you about the source of these money. Therefore, it would be better to deposit the money in FD by digital way, so that the income tax department will have a record of your transaction and you will not have any problem.
Depositing money in a bank account
Just like the income tax department can ask you a question on depositing Rs 10 lakh or more cash in a fixed deposit in a year, in the same way if you have 10 lakh or more in cash in a bank or co-operative bank in a year If you deposit, you will come on the radar of the Income Tax Department.
