Useful thing: If you do a large cash transaction, it can put you in trouble. The Income Tax Department can send a notice to you on depositing money in a bank, investing in a mutual fund, or paying a higher bill of a credit card. That is why if a person performs a large cash transaction, then they have to give information to the Income Tax Department. We are telling you about 6 such cash transactions so that you do not have to face any trouble.
Fd over 10 lakhs
If you deposit more than 10 lakh rupees in a year in a Fixed Deposit (FD), then you can get a notice from the Income Tax Department. Whether they are deposited in one go or multiple times or cash transactions or digital. The Income Tax Department can ask you about the source of this money and send a notice to you. In this case, deposit most of the money in FD through check.
Do not deposit too much cash in a bank account
If you deposit a large amount of cash in a bank or a co-operative bank, then the bank or the co-operative bank will inform the Income Tax Department. If a person deposits an amount of Rs 10 lakh or more in cash in one account or more than one account in a financial year, the Income Tax Department can send a notice and ask for the source of the money.
There can be trouble even if you pay the credit card bill in cash
If your credit card bill is more than 1 lakh and you fill this bill in cash at one time. You may still notice. On the other hand, if you pay a credit card bill of more than Rs 10 lakh in cash in a financial year, then you can also be asked about the source of the money. If you have done something like this, then you have to give this information in your income tax return.
On paying more cash to buy property
If you make a large transaction in cash with the property registrar, then its report also goes to the Income Tax Department. If you buy or sell a property worth 30 lakhs or more in cash, it will be reported by the property registrar to the Income Tax Department. In such a situation, the Income Tax Department can ask you for information about this transaction.
If you make more cash transactions in shares, mutual funds, debentures, and bonds, then you may face problems. Cash transactions up to a maximum of Rs 10 lakh can be done in such instruments in a financial year. You can get into trouble if you make a cash transaction of more than this.
Do not take cash gifts of more than 2 lakh rupees
According to section 269ST, if a person receives an amount of 2 lakhs or more in cash, then a penalty will be imposed on that person. This means that the penalty in this section will be imposed on the cash received and not on the person who paid the amount. So if you are taking 2 lakh or more as a gift, then take it only through banking channels, such as – A / C Payee Check, or A / C Payee Bank Draft, or through Electronic Clearance System. Transfer from bank to. If the payment is being received through a self-check, then it will also be treated as a cash transaction and a penalty will be levied.
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