5 Scenarios the Income Tax Department Can Send You a Notice

5 Scenarios the Income Tax Department Can Send You a Notice

PrimeNewsly: Regarding Income tax, the five high-value amount transactions can be trouble for you, but there is no problem in making small purchases. An income tax notice can be sent to your house as soon as income tax department get any info regarding high value transaction.

Now there is an era of digital payment, but many people find it good and easy to make cash transactions. However, many people also exchange money to avoid the income tax department. While there are five high-value cash transactions that you may find overwhelming, you can make small purchases with cash. You can get the notice as soon as you get the information from the Income Tax Department. Let's know about these high value transactions in details:

1: Deposit of Cash in Bank Account

According to the rules of the Central Board of Direct Taxes (CBDT), if someone deposits Rs 10 lakh or more in cash in a financial year, it is reported to the Income Tax Department. This money can be deposited in one or more accounts. If you are depositing more money than the prescribed limit, then the income tax department can ask you about the source of this money.

2: Deposit of cash in fixed deposits

Just as there is a question of depositing more than Rs 10 lakh in a financial year in a bank account, the same happens with FD. If you deposit more than Rs 10 lakh in one or more FDs in a financial year, then in case of any doubt, the Income Tax Department can ask you about the source of the money.

3: Bulk property transactions

If you have made a cash transaction of Rs 30 lakh or more while buying a property, then the property registrar will definitely inform the income tax department about this. In such a situation, due to such a large transaction, the Income Tax Department might ask where you brought the money.

4: On Paying Credit Card Bill

If your credit card bill goes up to Rs 1 lakh or more and you pay it in online, then you can still be asked regarding the source of the money. Additionally, if you pay Rs 10 lakh or more in any way in a financial year, then you can be questioned by the Income Tax Department from where you brought the money.

5: Buy shares, mutual funds, debentures or bonds

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If a large amount of transaction will be used to buy shares, mutual funds, debentures or bonds, then the Income Tax Department also becomes alert. If a person makes a transaction of Rs 10 lakh or more, the information reaches the Income Tax Department. In such case, the Income Tax Department can also ask you from where you brought the amount.