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If you mostly use cash for transactions then you need to be careful. The Income Tax Department can issue a notice in your name. Explain that the Income Tax Department monitors people who do more transactions in cash.
If you have more cash transactions in your transaction history, then you may be asked about the source of the money.
Let us tell you that the Income Tax Department is taking strict steps regarding financial irregularities. In such a situation, all those people who use cash for big transactions can be on their radar. Today we are here telling you what rules have been made regarding cash transactions which you need to keep in mind.
No more than 10 lakh cash in bank account or FD
If you deposit Rs 10 lakh or more in cash in any of your bank accounts in a financial year, then the Income Tax Department can ask you for its information. Please tell that its maximum limit in the current account is Rs 50 lakh. At the same time, in FD also, you cannot deposit more than Rs 10 lakh in cash in a year. If you want to deposit more amount than this, then you can pay online or through cheque.
Use of cash for credit card bill payment or investment
If you use cash more than Rs 1 lakh for credit card bill payment, then you can be asked for its information. At the same time, you cannot use much cash for investment. If you do cash transactions in any shares, mutual funds or bonds, then keep in mind that for this also you cannot use more than 10 lakh cash in a financial year. If you do this, the Income Tax Department can send you a notice.
Rules for paying for property in cash
Cash is widely used in the real estate sector. If you pay in cash to buy a property, it is important to know its rules. Let us tell you that after making a big transaction in cash with the property registrar, its report goes to the Income Tax Department. If you buy or sell a 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 may get into trouble.