The Income Tax Department monitors the people who carry out more cash transactions.
If there are more cash transactions in your transaction history, you may be asked where the money came from.
You cannot deposit more than Rs 10 lakh in cash in a bank or FD account.
New Delhi. If you mainly use cash for transactions, you should be careful. The Income Tax Department may issue a notice on your behalf. Explain that the Income Tax Department monitors people who make more cash transactions. If you have more cash transactions in your transaction history, you may be asked where the money came from.
Let us tell you that the Income Tax Department is taking strict action regarding financial irregularities. In such a situation, all those people who use cash for large transactions may be on your radar. Today we are here to tell you what rules have been made regarding cash transactions that you should be aware of.
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No more than 10 lakh cash in bank account or FD
If you deposit Rs 10 lakh or more in cash to any of your bank accounts in a tax year, then the Income Tax Department may ask you for your information. State that your maximum limit on checking account is Rs 50 lakhs. At the same time, in FD too, you cannot deposit more than Rs 10 lakh in cash in a year. If you want to deposit more than this amount, you can pay online or by check.
Use the cash for credit card or investment bill payments
If you use more than Rs 1 lakh in cash to pay the credit card bill, your information may be required. At the same time, you cannot use a lot of cash for investment. If you do cash transactions in stocks, mutual funds or bonds, keep in mind that for this you also cannot use more than 10 lakh cash in a financial year. If you do, the Income Tax Department may send you a notice.
Rules for paying cash for the property
Cash is heavily used in real estate. If you’re paying cash to buy a property, it’s important to know their rules. Let us tell you that after you make a big cash transaction with the property registrar, your report goes to the Income Tax Department. If you buy or sell property worth Rs 30 lakh or more in cash, the Income Tax Department gets information about it. These rules should always be kept in mind, otherwise you can get into trouble.
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FIRST POSTED: March 19, 2023, 6:12pm IST