Beware! Income Tax Department may flag these 5 high-value cash transactions
There's a limit for every transaction at the bank. Exceeding this limit can result in the Income Tax Department directly issuing a notice to customers seeking clarification.
FollowEven in the digital age, many prefer cash transactions. Small transactions are fine, but large cash transactions can raise red flags. The Income Tax Department is vigilant, and such individuals may come under their radar.
Cash Deposits in Bank Accounts: As per CBDT rules, depositing Rs 10 lakh or more in cash in a financial year is reported to the Income Tax Department. This can be across multiple accounts. The IT department may seek clarification on the source of funds.
Cash Deposits in Fixed Deposits: Similar to bank deposits, depositing over Rs 10 lakh in one or more FDs in a financial year can trigger an inquiry from the Income Tax Department about the source of funds.
Large Property Transactions: Cash transactions of Rs 30 lakh or more for property purchases are reported to the Income Tax Department by the property registrar, potentially leading to inquiries about the source of funds.
Credit Card Bill Payments: Paying credit card bills of Rs 1 lakh or more in cash can raise questions. Cumulative payments exceeding Rs 10 lakh in a financial year can trigger inquiries from the Income Tax Department.
Purchase of Stocks, Mutual Funds, Debentures, or Bonds: Using large amounts of cash for these purchases alerts the Income Tax Department. Transactions of Rs 10 lakh or more are reported, potentially leading to inquiries.
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