Cash Transaction Rule Update: Caution! You can get income tax notice for doing these 5 types of cash transactions

Cash Transaction Rule Update: If any transaction, whether or not offline or on-line, exceeds a restrict, the Income Tax Department sends a notice to the home. In at this time’s story we’ll know as much as how a lot we can transact. What is its restrict?

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Cash Transaction Rule Update: Due to quick access to web, to avoid wasting their time, a big inhabitants in India is shifting in the direction of doing on-line transactions or somewhat it has elevated. However, there’s a part which continues to be deciding on the choice of cash transactions. The level to be famous right here is that if any transaction, whether or not offline or on-line, exceeds a restrict, the income tax authorities ship a notice to the home. In at this time’s story we’ll know as much as how a lot rupees we can transact. What is its restrict? What is the choice to keep away from IT notices when exceeded?

1- Depositing cash in checking account
According to the foundations of the Central Board of Direct Taxes (CBDT), if an individual deposits Rs 10 lakh or extra in cash in a monetary 12 months, then it must be reported to the Income Tax Department. This cash might have been deposited in a number of accounts of the identical account holder. Since somebody is depositing more cash than the prescribed restrict, the Income Tax Department might ask you for details about the supply of the cash.

2- Depositing cash in fastened deposit
Just as a financial institution can inquire about cash deposits of Rs 10 lakh in a monetary 12 months in a checking account, it applies the identical guidelines for transactions in FD. If somebody deposits greater than Rs 10 lakh in FD in a monetary 12 months, the Income Tax Department can ask them concerning the supply of the cash.

3- Buying shares, mutual funds, debentures or bonds
Many folks contemplate investing in shares, mutual funds, debentures or bonds as a very good choice. Such investments can additionally develop the behavior of saving cash within the investor, but when one makes use of giant quantities of cash to purchase shares, mutual funds, debentures or bonds, it additionally alerts the Income Tax Department.

If an individual makes a transaction of Rs 10 lakh or extra in any such funding choice, then its data reaches the Income Tax Department, which can ask you concerning the supply of the cash.

4- Payment of bank card invoice
Nowadays, use of bank cards has develop into a standard factor. Many occasions, customers’ payments run into lakhs of rupees, but when your month-to-month bank card invoice is greater than Rs 1 lakh and also you wish to pay it in cash, then the Income Tax Department will nonetheless ask you concerning the supply of your cash. Can ask. At the identical time, in the event you pay Rs 10 lakh or extra in a monetary 12 months by way of any medium on-line or offline, then the Income Tax Department might query you as to the place you bought this cash from?

5- Property associated transactions
Real property costs in cities and tier-II cities are exorbitant, and transactions of giant quantities are frequent, however beware of the Income Tax Department if you’re making cash transactions of Rs 30 lakh or extra whereas shopping for a property. The property registrar will inform the Income Tax Department, who in flip might ask you concerning the supply of the cash.

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