The Income Tax Department keeps an eye on every big transaction of yours. Wherever it suspects something, it will send you a notice. So, especially while making payments through cash, keep these 5 things in mind.
In the digital era, as the payment system has changed, the monitoring on them has also increased. How much money are you paying online? Or are you buying some goods through cash? The Income Tax Department keeps an eye on all of them. If you are thinking that unless we tell the Income Tax about our payment, it will come to know, then you can get into a bad situation. Let us tell you about 5 such methods of cash transfer, which you have to keep in mind. Otherwise, you may get a notice from the Income Tax.
Depositing a large amount in a savings account
If you deposit more than Rs 10 lakh in your savings account in a financial year, the bank can give your information to the Income Tax Department, after which you can be questioned. Getting a notice does not mean that you have evaded tax. However, the Income Tax Department will definitely ask you where you got so much money from. If your answers do not match, the department can impose a fine.
Amount deposited in FD
Apart from this, if you deposit more than Rs 10 lakh in FD for safe returns, then also you can come under the radar of Income Tax. You will have to tell the department the source of your income.
Shares and Mutual Funds
If you invest more than Rs 10 lakh in any share or mutual fund, then even if you do not tell, that information will reach the tax department. After this, you can get a notice. It is not necessary that the department sends a notice immediately, but there are chances that you may come under its purview. You may have to give an account of your income.
Paying credit card bill in cash
If you use a credit card and deposit its bill by cheque or offline to a bank or financial institution. That amount is more than Rs 1 lakh every month, then the tax department can remember you. Can send inquiry notice.
Cash payment while buying property
Apart from this, if you buy property worth more than Rs 30 lakh, then you will have to tell about its source. At some places this limit is also Rs 50 lakh and Rs 20 lakh. If you buy property worth more than this amount, you will have to tell the department about the source of income.
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