Tax Notice: People making small and large transactions in cash should know about the tax rules related to it. The Income Tax Department has information about every such transaction. The tax department can ask you about the source of this cache.
In today’s digital age, most people make small and big payments themselves online. For this, they do not have to put long lines in banks. But before paying more than a fixed limit, you should also know about the rules of income tax. It may not be that you have done the transaction and you are done. But later the Income Tax Department should send you a notice for this. Keeping this in mind, today we are telling you about 5 such transactions, on which you may have to pay income tax.
Even if you make a large amount of cash transaction with the property registrar, information about this is also given to the tax department. Under the rules, the property registrar informs the income tax department on buying and selling property worth Rs 30 lakh or more in cash. After this, the Income Tax Department can ask you this information, what is the source of the cash for this transaction.
Even if you are paying a credit card bill, you must know about the rules of income tax. If a person makes a credit card bill payment of more than 1 lakh rupees at a time, then the question can be asked from the income tax. It should also be kept in mind that if a bill is paid over 10 lakh rupees in cash during a financial year, then the tax department can find out about its source. The card company gives the income tax department about such transactions.
Under the rules of the Central Board of Direct Taxes (CBDT), if a person deposits more cash than a fixed limit in his bank or any other co-operative bank account, the bank will inform the Income Tax Department. This limit of deposit is 10 lakh rupees. If you deposit more than 10 lakh rupees in your bank account once or many times during a financial year, you will have to pay tax on it.
If you deposit a large amount of cash to get FD, then you should be ready to pay tax on it. In fact, if you make a deposit of Rs 10 lakh or more at one time or more than once during a financial year, the bank informs it to the Income Tax Department. After this, the tax department can ask you about the source of this money. To avoid such a situation, you can take payment through online or check.
If you buy and sell the stock market, mutual funds, debentures or bonds in cash, then you may face problems. According to the rules, you can only transact a total of 10 lakh rupees during a financial year in such a transaction. In such a situation, it is important that you take care of it as well.
