- Have any questions?
These high-value cash transactions may result in income tax notices.
Notice Regarding Cash Transactions: If you are a citizen, you should be aware of the following information. A single blunder can result in a notice from the tax division. In actuality, the government keeps track of all your financial transactions. If you perform more cash exchanges than the cutoff, you may receive a notice from the Internal Revenue Service.
In reality, the IRS must provide information to banks, mutual funds, businesses, and property owners if someone is involved in large-scale money transactions. If you do more money transactions than automated in this situation, you are making a mistake. Tell us about any cash transactions that may result in an Income Tax Department notice.
Purchasing a home
If you trade property worth 30 lakhs or more in cash, the Income Tax Department will be informed. In this case, the Income Tax Department has the right to question you about it. You can also get some information about where your money comes from.
Credit Card Bill Payment
You may encounter issues if you also deposit the Mastercard bill in real money. If you deposit more than Rs 1 lakh in cash in one go with your Visa bill, the Income Tax Department has the right to question you. If you pay a Visa bill for more than Rs 10 lakh in cash in a fiscal year, you must also provide the source of the money.
Investing in stocks and mutual funds
If you put money into the financial exchange or perform a lot of money exchanges in mutual funds, debentures, and securities, be cautious. If you invest more than Rs 10 lakh in these in a calendar year, the Income Tax Department will send you a notice.
In a money market account, make a cash deposit.
If you deposit more than Rs 10 lakh in fixed deposits in a year, the Income Tax Department may be able to learn more about your source of funds. You carefully deposit funds in an FD so that the personal expense division has a record of your transactions and you don’t have to deal with any issues.
Avoid putting cash in your bank account.
You might be addressed if you deposit Rs 10 lakh or more in cash in a year in fixed deposits. Aside from that, if you save a sum of 10 lakh or more in cash in any bank or cooperative bank in a year, you would fall under the Income Tax Department’s radar. In this case, deposit any amount online so that the division is aware of your transaction.