Income Tax Rule: If you also do transactions of this much money, then you must read this news. If you do online or bank transactions every day, then the Income Tax Department can follow you.
IT Notice On High Value Cash Transaction: In the fast paced world, every day people transact money online or from bank. But many times high value money transactions become a problem for the people and the Income Tax Department falls behind. The Income Tax Department has also given a way to avoid this type of problem.
The Income Tax Department monitors the cash transactions of each individual. Especially high-value cash transactions are kept under watch. The Income Tax Department has fixed the limit for high value cash transactions. As soon as you cross this limit, the eyes of the Income Tax Department get stuck, which can become a problem for you.
Limit for savings and current account-
According to the limit set by the Income Tax Department for high-value cash transactions, there should not be a transaction of more than Rs 10 lakh in a savings bank account in a financial year. At the same time, if you do a transaction of more than Rs 50 lakh from the current account, you come in the eyes of the Income Tax Department.
Income tax sends notice-
If you cross the cash transaction limit fixed by the Income Tax Department, then the department scrutinizes your records with the help of government agencies and financial institutions. After this issues notice to you. This process can cause a lot of trouble for you.
How to avoid limit crossing?
According to the Income Tax Department, you will have to inform about crossing the fixed limit. Along with this, while filing income tax, you have to mention that your cash transaction can cross 10 lakhs in a financial year. If you mention this in the income tax form in advance, then you will be saved from trouble.
Even after doing this, Income Tax will send notice-
1- Fixed Deposits should not go beyond the limit of 10 lakhs.
2- Payment of credit card bill should not exceed 1 lakh. There should not be a transaction of 10 lakhs in the financial year.
3- There should be no sale or purchase of immovable property worth more than 30 lakhs.
4- The limit of cash transactions related to investment in mutual funds, stocks, bonds should not exceed Rs 10 lakh in a financial year.
5- The sale of foreign exchange in a financial year should not exceed Rs 10 lakh or more.
If the limit of the above mentioned points is crossed, then the Income Tax Department will have to be informed about it by filling the ITR. Otherwise the Income Tax Department will issue a notice.
