Cash Transaction Information: If you are also a taxpayer then this news is for you. One mistake can get you a notice from the tax department. All your financial transactions are monitored by the government. If you transact cash in excess of the limit, you may get a notice from the Income Tax Department. Banks, mutual funds, brokerage houses and property registrars are required to inform the Income Tax Department if someone undertakes large cash transactions. In such a situation, if you are doing more cash transactions than digital, then you are doing wrong. Let us know about some such cash transactions that can come in the eyes of the Income Tax Department.
1. Purchase of Property: If you buy or sell a property worth Rs 30 lakh or more in cash, it will be reported to the Income Tax Department. In such a situation, the Income Tax Department can inquire about you. You may also be asked about the source of your cash.
2. Credit Card Bill Payment: If you pay your credit card bill in cash, you could be in trouble. If you deposit a credit card bill of more than Rs 1 lakh in cash at a time, the Income Tax Department can investigate you. If the credit card bill of more than Rs 10 lakh is paid in cash in any financial year, you will also need to state the source thereof.
3. Purchase of Shares and Mutual Funds: Be careful if you invest in the stock market or deal in large amounts of cash in mutual funds, debentures and bonds. If you invest more than Rs 10 lakh in it in a financial year, you can get a notice from the Income Tax Department.
4. If cash is given at the time of making FD: If you keep more than Rs 10 lakh in fixed deposits in a year, then the Income Tax Department may ask you for information about the source of this money. You deposit money in FD only digitally, so that the Income Tax Department has a record of your transactions and you do not face any problem.
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5. Do not deposit cash in bank account: If you deposit 10 lakh or more cash in a year in any bank or co-operative bank, then you will come under the radar of Income Tax Department. If you want to deposit any amount, do it online so that the department is aware of your transaction.
