Avoid These 5 Cash Transactions To Escape Income Tax Notices

Income Tax : Nowadays, the methods of digital payment are increasing, but along with this, the Income Tax Department has also increased its eye on your transactions. If you think that you can escape by hiding information, then you may get into trouble. In this article, we will tell you 5 such ways due to which you can get a notice from the Income Tax Department if you do not take care.

1. Depositing a large amount in a savings account

If you deposit ₹ 10 lakh or more in your savings account in a financial year, then the bank can give its information to the Income Tax Department. Then the Income Tax Department can ask you about the source of this money. This does not mean that you have made a mistake, but you will have to tell where this money has come from. If your answer does not match properly, then there can also be a fine.

2. Investment in shares and mutual funds

If you invest ₹ 10 lakh or more in a share or mutual fund, then the Income Tax Department also gets its information, whether you have told it or not. After this you may have to give an account of your income. The department may take time to send a notice, but you should be prepared.

3. Depositing a large amount in FD

If you deposit ₹ 10 lakh or more in FD (fixed deposit), then it can also come under the notice of the Income Tax Department. You will have to tell where this amount has come from. If the department does not get the right answer, then they can inquire.

4. Paying credit card bills in cash

If you pay your credit card bill in cash every month and that amount is ₹ 1 lakh or more, then this information can also reach the Income Tax Department. If you do this, then you can get a notice from the Income Tax Department. For this, you will have to prove that this money has been earned in the right way.

5. Using cash to buy property

If you use cash to buy property worth ₹ 30 lakh or more, then you will have to tell the source of this money. If this limit is ₹50 lakh or ₹20 lakh, then you will have to give this information to the Income Tax Department. If you do not get the right answer about the source of this money, then you may have to face interrogation from the department.

Conclusion:

The Income Tax Department now keeps an eye on your every big cash transaction, so you should be careful in these 5 ways. If you do not give the correct account of your income, then you can come to the attention of the department, and you can get a notice. So always keep all your transactions correct and clean so that you do not face any problems.

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