Income Tax: Income Tax monitors these five of your transactions and then notifies you

 Income Tax: Income Tax monitors these five of your transactions and then notifies you

Income Tax: Income Tax monitors these five of your transactions and then notifies you

Income Tax: This information is for you if you also do cash transactions. Let us really inform you that the Income Tax Department is monitoring these five of your cash transactions and will thereafter give you a notification.

Even in these day of digital payments, a lot of individuals still think that using cash makes transactions simpler and more effective. To avoid being detected by the Income Tax Department, a lot of individuals also conduct cash transactions.

If you perform small-scale cash purchasing, it shouldn't be an issue, but there are five high-value cash purchases that might end up costing you money. As soon as the Income Tax Department learns about it, you can get an Income Tax Notice. Tell us about them, please.

1. Making a bank account cash deposit

The Income Tax Department is notified whenever an individual deposits Rs 10 lakh or more in cash within a financial year, as per the guidelines set out by the Central Board of Direct Taxes (CBDT). One or more accounts may have received this money. The Income Tax Department may question you about the source of this money if you are depositing more than the allowed amount.

2. Putting money into a fixed deposit

Similar concerns are raised about FDs as they are about depositing more than Rs 10 lakh into a bank account during a fiscal year. If, throughout a financial year, you deposit more than Rs 10 lakh in one or more FDs, the Income Tax Department may inquire as to where the money came from.

3. Large-scale real estate deal

In the event that you paid cash for a home purchase totaling at least Rs 30 lakh, the property registrar would undoubtedly notify the Income Tax Department of this. Because this was such a large transaction, the Income Tax Department could inquire as to where you got the money.

4. Making a credit card payment

You can still be questioned about the source of the money if your credit card bill is more than Rs 1 lakh or more and you pay it with cash. At the same time, the Income Tax Department may interrogate you about where you obtained the money if you make any kind of payment totaling Rs 10 lakh or more in any given financial year.

5. Purchasing bonds, debentures, mutual funds, or shares

The Income Tax Department is also notified when a significant sum of money is utilized to purchase bonds, mutual funds, shares, or debentures. Information about a transaction above Rs 10 lakh is sent to the Income Tax Department. The Income Tax Department could question you about where you got the money in such a case.