These type of transaction can make you to pay income tax

Income Tax has become very cautious about cash transactions. In the last few years, the Income Tax Department has tightened the rules related to various investment platforms like banks, mutual funds, LIC, digital brokerage platforms, real estate, private or commercial properties etc. If there is a cash transaction more than a limit, then big action can also be taken.

  • If any person invests 50% of his total income, especially in cash, then the team of these less tax keeps separate data of such persons. Keeps an eye on them constantly.
  • On the other hand, if you deposit 15 lakh or more money as FD in cash more than once or more than once in a year, you will still be on top of the income tax radar. So if you are right then you should deposit most of the money online or through cheque.
  • Any ordinary employed person can deposit up to Rs 10 lakh in his savings account in a year. If it is above that. Or if it accumulates several times, the department may question him on his income. The maximum limit in current accounts is Rs 50 lakh. However, this limit is increased for traders.
  • Credit card bill to any person deposit cash 1 lakh times. Or deposit cash bills up to 10 lakhs in a year. So you have to be ready to answer the questions of Income Tax .
  • On giving cash of Rs 30 lakh or more in the property, its information is sent to the Income Tax on behalf of the Registrar. Therefore, one should never buy a property in cash of Rs 30 lakh or above.
  • Similarly, if you invest more than Rs 15 lakh in stock market, mutual funds, LIC, debentures and bonds in a year, then income tax can ask you the size question anytime.

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