Income Tax Rules: If you want to avoid income tax notice, do not do these 7 transactions even by mistake. If you do some of these transactions, you can be directly noticed by the income tax department. You can be sent a notice. These are such transactions in which even a CA will refrain from answering it. Especially, this information is very important for credit card users. Know which are the transactions that can put you in trouble.
Big spend on credit card
If you spend more than ₹ 2 lakh annually on a credit card, then the Income Tax Department keeps an eye on you. Large transactions may attract the attention of the department.
Foreign travel above ₹2 lakh
If you have spent more than ₹ 2 lakh on foreign travel in a year, then its data goes to the Income Tax Department.
Credit card bill payment in cash
If a person pays a credit card bill in cash amounting to ₹1 lakh or more, then the Income Tax Department has the right to investigate this transaction. If this transaction is found suspicious or it is related to black money smuggling, then an income tax notice can be sent. Apart from this, fine or penalty can also be imposed.
Transactions in mutual funds and shares
If you have invested more than ₹ 10 lakh in a year in Mutual Funds, Stocks or Bonds, then the Income Tax Department can send you an Income Tax Notice.
Property transaction above ₹30 lakh
If you have bought a property whose value is ₹ 30 lakh or more, then its information is automatically received by the Income Tax.
Cash Deposit
Income tax department may take notice of you if you deposit a large amount of cash in your bank account. The chances of getting a notice increases if you deposit more than ₹10 lakh in cash.
Business transactions in cash
The Income Tax Department keeps an eye on business transactions done in cash. The department can ask you for information on business transactions of more than ₹50,000.
