Income Tax Department: In this era of new technology, most people prefer to make digital payments, but there are many people who find cash transactions easy and good. At the same time, many people also make cash transactions so that they can avoid the eyes of the Income Tax Department. But even if you think that you can save tax through cash transactions, the Income Tax keeps an eagle eye on your 5 cash transactions.
If you also use cash for transactions then this news is useful for you. Actually, the Income Tax Department has become very alert about cash transactions these days. In such a situation, doing transactions in large amounts of cash can be harmful for you. The Income Tax Department keeps a close watch on certain types of transactions. The point to be noted here is that if any transaction, whether offline or online, is done beyond a limit, the Income Tax department sends a notice to the house.
Let us tell you today which transactions the Income Tax Department keeps a close eye on…
1- Depositing cash in bank account
According to the rules of the Central Board of Direct Taxes (CBDT), if someone deposits Rs 10 lakh or more in cash in a financial year, then it is reported to the Income Tax Department. This money may have been deposited in one or more accounts. Now since you are depositing more money than the prescribed limit, the Income Tax Department may ask you about the source of this money.
2- Depositing cash in FD
Just as questions arise when you deposit more than Rs 10 lakh in a financial year in a bank account, the same happens with FDs. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, then if there is any doubt, the Income Tax Department can question you about the source of the money.
3- Big property transactions (Income Tax)
If you have made a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar will definitely inform the Income Tax Department about this. In such a situation, due to such a large transaction, the Income Tax Department can ask where you got the money from.
4-Payment of Credit Card Bill
If your credit card bill is Rs 1 lakh or more and you pay it in cash, you can still be asked what is the source of the money. On the other hand, if you make a payment of Rs 10 lakh or more in any financial year by any means, then the Income Tax Department can question you as to where did you get the money from.
5- Buying shares, mutual funds, debentures or bonds
If a large amount of cash is used to buy shares, mutual funds, debentures or bonds, then this also alerts the Income Tax Department. If a person makes a transaction of Rs 10 lakh or more, then the information about it reaches the Income Tax Department. In such a case, the Income Tax Department can ask you where you brought the cash from.
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