Over the past few years, income tax authorities and various investment platforms such as banks, investment trust companies, and broker platforms have discouraged cash transactions by tightening rules for the general public. Currently, these agencies allow cash transactions to a certain extent, and in the event of a minor breach, the Income Tax Office may send a notice to the offender.
Mumbai-based tax and investment expert Balwant Jain said of the various cash transactions that could lead to income tax notices: Cash Trading Today, there are various tools to know that you have made a high value cash transaction. For example, if a person uses cash to invest in the stock market through a demand draft, the broker reports on the investment in the balance sheet. So you need to know the high cash transaction limits, keep your cash transactions within those limits and avoid receiving any income tax notices of any kind. “
Balwant Jain asked about the top five cash transactions that can attract income tax notices.
1]Savings / Checking Deposits: For individuals, the cash deposit limit of a savings account is ￡10,000 rupees.The owner of the savings account ￡For a savings account of Rs 10,000, the Income Tax Office may send an income tax notice.Similarly, for checking deposit holders, the limit is ￡You may also be responsible for income tax notifications if you violate this limit of Rs 500,000.
2]Credit card bill payment: People should not cross while paying a credit card bill ￡Limit of 10,000 rupees. If you violate this cash limit when paying your credit card bill, the Income Tax Office will not work.
3]Bank FD (fixed deposit): Cash deposits on bank FDs are allowed, but must not be exceeded ￡100,000 rupees.Violation of this ￡The limit of 100,000 rupees is also not recommended for bank depositors who deposit cash in their bank’s FD account.
4]Investment Trusts / Stock Markets / Bonds / Corporate Bonds: People who invest in investment trusts, stocks, bonds or corporate bonds need to ensure that cash injections into the above investment options do not exceed that. ￡Limit of 100,000 rupees. Failure to maintain this cash injection limit may result in the Income Tax Office checking the final income tax return (ITR).
5]Real estate: When buying or selling real estate, you need to confirm the above cash transaction ￡Rs 300,000 is suspicious as the Income Tax Office discourages cash transactions that exceed this limit in real estate transactions.
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5 cash transactions that can attract the attention of IT
Source link 5 cash transactions that can attract the attention of IT