If you make any irregularities in money transactions, then the Income Tax Department gets its information and then it can also send you a notice. Whether you commit this mistake intentionally or unknowingly. To avoid income tax notice, you can keep some things in mind about which we are telling you.
People take various measures to avoid notice from the Income Tax Department. Still, they commit such mistakes knowingly or unknowingly that they receive income tax notices.
We are telling you about some such transaction rules, by keeping in mind which you can avoid the notice of Income Tax Department.
How much cash can you deposit?
Many people think that they can deposit any amount of money in their bank account. but it’s not like that. The rules of the Central Board of Direct Taxes (CBDT) say that if a person deposits Rs 10 lakh or more in cash in a financial year, then this information has to be given to the Income Tax Department.
This amount can be deposited in one or more accounts, which will be opened in your name only. Since, you are depositing money more than a limit, the Income Tax Department may ask where this money has come from. Its purpose is to know whether money has been earned illegally.
Be careful while buying a big property
Even if you make a big transaction while buying a property, the Income Tax Department can ask about it. If you have done a cash transaction of Rs 30 lakh or more, then the property registrar gives this information to the Income Tax Department. In such a situation, the Income Tax Department can ask about the source of money. To avoid this, you should keep the necessary documents ready.
Keep an eye on investment also
At present, stock market and mutual funds (MF) have emerged as preferred investment options. If you have done a transaction of Rs 10 lakh or more in the stock market and MF as well as for purchasing debentures or bonds, then this information is received by the Income Tax Department. Even in this situation, the department may ask you from where you got such a huge amount of money.
Question on credit card bill also
If you use your credit card excessively and your bill exceeds Rs 1 lakh or more, then you need to be alert. If you make bill payments in cash, you may be asked about the source of the money. Even if a payment of Rs 10 lakh or more is made in any financial year by any means, questions can be asked about the source of the money.
