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High value transactions that lead you to tax notice:

High value transactions that lead you to tax notice:
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High value transactions that lead you to tax notice:

High value transactions that lead you to tax notice:

Income Tax Suggestions: Despite the increasing emphasis on digital, there are many people who find cash transactions easy and convenient. But large amounts of cash transactions can put you on the radar of the income tax department. There are many transactions that the Income Tax Department monitors and can answer your questions. Banks, mutual funds, brokerage houses and property registrars need to be notified to the Income Tax Department if you transact more than the prescribed limit. Let us know about 6 transactions that could get you in trouble and issue an income tax notice.

Deposit cash in FD

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If you deposit large amount in FD through cash, the bank will have to report it to the Income Tax Department. The Central Board of Direct Taxes (CBDT) has asked banks to notify CBDT of the amount deposited in cash with the banks if a person has made one or more term deposits (other than term deposits renewed through term deposit) in 10 or more financial years.

Cash deposit in bank account

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The CBDT has made it a rule that if you deposit Rs 10 lakh or more in one or more accounts of any bank or any co-operative bank in a financial year, the bank or co-operative bank will notify you. Tax department. This rule is the same as FD. Current account and time deposit are excluded. If you deposit more than this fixed limit, the income tax department may question the source of the money.

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Credit card bill payment

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Sometimes people even deposit credit card bills in cash. If you pay a credit card bill of Rs 1 lakh or more in cash, the Income Tax Department will be notified. On the other hand, if you pay a credit card bill of Rs. Of money.

Property transactions

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If a person buys or sells immovable property worth Rs 30 lakh or more, the property registrar has to inform the tax authorities. In such a situation, the income tax department may ask you where did you get the money for such a big transaction?

Purchase of shares, mutual funds, debentures and bonds

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If you make large cash transactions in shares, mutual funds, debentures and bonds, you may face difficulties. In a financial year, if a person buys shares, mutual funds, debentures and bonds for an amount of Rs 10 lakh or more, the companies or institutions have to inform the income tax department.

Buy foreign currency

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The Income Tax Department also monitors the transactions that take place when buying foreign currency. If a person buys foreign currency worth Rs 10 lakh, the information goes to the income tax department. Foreign currency includes traveler’s checks and foreign currency cards, debit or credit cards. Therefore, care needs to be taken in buying foreign currency as well.

Post Office Account: Don’t make this mistake, otherwise you will not get interest of a single rupee

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