Cash Transaction Notice: If you are a taxpayer, then there is very important news for you. You can get a notice from the tax department on one of your mistakes. Actually, the government keeps an eye on all your financial transactions. If you do cash transactions more than a limit, then you can get a notice from the Income Tax Department.
Actually, if someone does a big cash transaction, then the Income Tax Department has to inform the bank, mutual fund, brokerage house and property registrar. In such a situation, if you also do more cash transactions than digital, then you are making a mistake. Let's know about some such cash transactions, due to which you can get the notice of Income Tax Department.
Property Purchase
If you buy or sell property worth Rs 30 lakh or more in cash, you will be informed to the Income Tax Department. In such a situation, the Income Tax Department can inquire about this. You may also be asked about the source of your cash.
Credit card bill payment
If you also deposit the credit card bill in cash, then you may be in trouble. If you deposit your credit card bill in cash more than Rs 1 lakh at a time, then the Income Tax Department can inquire you. If you pay credit card bills in cash for more than Rs 10 lakh in a financial year, you will also have to mention the source.
Buying Shares and Mutual Funds
Be careful if you invest in the stock market or deal with large amounts of cash in mutual funds, debentures and bonds. If you invest more than Rs 10 lakh in these in a financial year, then you can get a notice from the Income Tax Department.
Deposit cash in FD
If you deposit more than Rs 10 lakh in fixed deposits in a year, then the Income Tax Department can ask you for information about the source of this money. Deposit money in FD in a digital way only, so that the Income Tax Department has a record of your transactions, and you do not face any problem.
Do not deposit money in bank account
The way you deposit Rs 10 lakh or more cash in a fixed deposit in a year, you can be questioned. Apart from this, if you have deposited cash of 10 lakh or more in a bank or co-operative bank in a year, then you will come under the radar of the Income Tax Department. In such a situation, if you want to deposit any amount, then do it online so that the department can know about your transaction.
Under the New Tax Regime, there is a basic exemption of Rs 3 lakh for both general and senior citizens. However, due to the tax rebate allowed under Section 87A, income up to Rs 7 lakh becomes tax-free.
Salaried employees are also eligible for a standard deduction of Rs 50,000, which makes income up to Rs 7.5 lakh tax-free for salaried persons under the new regime. Some deduction is allowed for family pensioners under this regime.
You must be logged in to post a comment.