Income Tax Notice: These days the Income Tax Department is very strict about financial irregularities. The department is keeping an eye on all those people who use cash for big transactions. If you also use cash more, then you need to know the rules related to it. Let’s know about it in detail.
If you use mostly cash for transactions then you need to be careful. The Income Tax Department can issue a notice in your name. Explain that the Income Tax Department monitors people who do more transactions in cash. If you have more cash transactions in your transaction history, then you may be asked about the source of the money.
Let us tell you that the Income Tax Department is taking strict steps regarding financial irregularities. In such a situation, all those people who use cash for big transactions can be on their radar. Today we are here telling you what rules have been made regarding cash transactions which you need to keep in mind.
Not more than 10 lakh cash in bank account or FD
If you deposit Rs 10 lakh or more in cash in any of your bank accounts in a financial year, then the Income Tax Department can ask you for its information. Please tell that its maximum limit in the current account is Rs 50 lakh. At the same time, in FD also, you cannot deposit more than Rs 10 lakh in cash in a year. If you want to deposit more amount than this, then you can pay online or through cheque.
Use the cash for credit card bill payments or investments
If you use more than Rs 1 lakh in cash to pay the credit card bill, then you may be asked for its information. At the same time, you cannot use much cash for investment. If you do cash transactions in any shares, mutual funds or bonds, then keep in mind that for this also you cannot use more than 10 lakh cash in a financial year. If you do this, the Income Tax Department can send you a notice.
Rules for paying in cash for the property
Cash is used a lot in the real estate sector. If you pay in cash to buy a property, it is important to know its rules. Let us tell you that after making a big transaction in cash with the property registrar, its report goes to the Income Tax Department. If you buy or sell a property worth Rs 30 lakh or more in cash, the Income Tax Department gets information about it. These rules should always be kept in mind otherwise you may get into trouble.
