The Income Tax Department has become very cautious about cash transactions these days. The Income Tax Department has over the years tightened the cash transaction rules for the general public on various investment platforms like banks, mutual fund houses, broker platforms etc.
Please tell that 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, they will have to inform the Income Tax Department. Let us know about 5 such transactions, which can land you in trouble.
1 Bank Fixed Deposit (FD):
If you deposit Rs 10 lakh or more in FD once or more than once in a year, the Income Tax Department may ask you about the source of the money. In such a situation, if possible, deposit most of the money in FD through online medium or through cheque.
2 Bank Savings Account Deposit:
If a person deposits Rs 10 lakh or more in cash in one account or in more than one account in a financial year, the Income Tax Department may question the source of the money. The maximum limit in current accounts is Rs 50 lakh.
3 Paying Credit Card Bills:
Many times people deposit the credit card bill in cash as well. If you deposit more than Rs 1 lakh in cash at one go in the form of credit card bills, then the Income Tax Department can inquire you. Whereas, if you make a cash payment of a credit card bill of more than Rs 10 lakh in a financial year, you may also be asked about the source of the money.
4 Transaction of property:
If you do any major transaction in cash from the property registrar, then its report also goes to the Income Tax Department. If you buy or sell a property worth Rs 30 lakh or more in cash, the information will be given to the Income Tax Department by the Registrar of Property.
- Purchase of Shares, Mutual Funds, Debentures and Bonds:
If you do large cash transactions in shares, mutual funds, debentures and bonds, then you may have to face problems. Cash transactions in such instruments can be done only up to a maximum of Rs 10 lakh in a financial year. So if you have any plans to invest money in any of these, then the first thing to keep in mind is that you do not have to use large amounts of cash.
Big news! Tax notice will come for these 5 cash transaction
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