Excessive cash transactions may result in a notice from the income tax department; Take care of these 6 things, otherwise you may get in trouble
This can get you in trouble if you make a large cash transaction. The Income Tax Department may send you a notice for depositing money in a bank, investing in a mutual fund, or overpaying for a credit card. So if a person transacts more cash, he has to inform the Income Tax Department. We are telling you about 6 cash transactions so that you do not face any problem.
On getting FD of more than 10 lakhs
If you deposit more than Rs 10 lakh in a year in a fixed deposit (FD), you may get a notice from the income tax department. Whether it's a one-time deposit or multiple times or a cash transaction or digital. The Income Tax Department can ask you about the source of this money and send you a notice. In such case deposit the money in FD by check.
Do not deposit excess cash in the bank account
If you deposit excess cash in a bank or co-operative bank, the bank or co-operative bank will notify the income tax department. If a person deposits Rs 10 lakh or more in cash in one of your accounts or in more than one account in a financial year, the Income Tax Department may send a notice seeking information on the source of the money.
Credit card bills can be difficult to pay in cash
If your credit card bill is more than 1 lakh and you pay this bill in cash at once. Even then you may notice. Also, if you pay more than Rs 10 lakh in cash in a financial year, you may be asked about the source of your money. If you have done anything like this, you have to give the information in your income tax return.
On giving more cash to buy a property
If you make a large transaction in cash with the property registrar, the report goes to the income tax department. If you buy or sell a property of Rs 30 lakh or more in cash, you have to inform the Income Tax Department from the Property Registrar. In such a case, the income tax department may ask you for information about this transaction.
Don’t give more cash to invest in shares and mutual funds
You may have problems if you make excessive cash transactions in stocks, mutual funds, debentures, and bonds. Cash transactions can be made up to a maximum of Rs 10 lakh in such an instrument in a financial year. Doing more cash transactions than that can get you in trouble.
Do not take cash gift more than Rs 2 lakh
According to Section 269ST, if a person receives cash amount of Rs 2 lakh or more, a penalty will be imposed on that person. This means that the penalty in this section will be levied on the recipient of the cash and not on the payer. So if you are taking a gift of Rs 2 lakh or more, take it only through banking channels, such as: - A / C Payee check, or A / C Payee bank draft or transfer to the bank through electronic clearance system. If the payment is being received by self check, it will also be treated as a cash transaction and will be penalized.
Posts
No comments:
Post a Comment