Cash Transaction Rules: Be aware of the income tax regulations governing cash transactions between a husband and wife and a father

Cash Transaction Rules: Be aware of the income tax regulations governing cash transactions between a husband and wife and a father

Cash Transaction Rules: Be aware of the income tax regulations governing cash transactions between a husband and wife and a father

Income tax monitors all of our transactions. But may Income Tax issue a notice, or are cash transactions subject to any taxes? Or how much money may be exchanged in cash between a father and son, or between you and your spouse? If these are thoughts that are on your mind as well, please share your responses with us.

This info will be helpful to you if you also exchange money between a spouse and wife or between a parent and son. Actually, we consider revenue in every transaction we do. Many individuals wonder in such circumstances whether they might obtain an income tax notification even for cash transactions. Tell us how much cash your household is able to trade.

Does income tax send out notices?

Experts in taxes state that if you give your wife money each month for home needs or as a gift, she won't be responsible for income taxes. The husband's income will be deemed to include both of these sorts of amounts. The Income Tax Department will not send the wife a notification about this sum. However, tax will be due on the income if the wife keeps investing this money and receives income from it. Stated differently, the income from investments that is determined annually will be regarded as the wife's income and will be subject to taxation.

Cash transactions above Rs 20,000 may be subject to penalties under Income Tax Sections 269SS and 269T. Nonetheless, there are often moments of rest.

In certain situations, there is an exception.

Transactions between husband and wife, father and son, and some close relatives, for instance, are not penalized. In these circumstances, an exception has been granted. Put simply, the income tax department will not send the wife a notification for this sum. However, the wife would have to pay taxes on the income if she keeps investing this money and makes money from it.