Income Tax Department could issue an income tax notification on these 5 highly valuable cash transactions

Income Tax Notice: Even in the digital age of India, many people prefer to transact in cash. Small transactions are OK, but the problem emerges when large cash transactions occur. The Income Tax Department gets alert at the least hint, and such individuals fall under its radar.

Let us know about these five high-value cash transactions that can result in an Income Tax Notice as soon as they are completed.

1- Putting cash in a bank account

According to the Central Board of Direct Taxes (CBDT), whenever someone deposits Rs 10 lakh or more in cash within a fiscal year, the Income Tax Department is notified. This money may have been placed in one or more accounts. Because you are depositing more money than the legal limit, the Income Tax Department may enquire about the source of this money.

2- Putting cash into a fixed deposit

Just as questions emerge when depositing more than Rs 10 lakh in a bank account in a single financial year, so do FDs. If you deposit more than Rs 10 lakh in one or more fixed deposits in a fiscal year, the Income Tax Department may query you about the source of the funds.

3- Significant property deals

If you completed a cash transaction of Rs 30 lakh or more when purchasing a property, the property registrar will undoubtedly notify the Income Tax Department. Due to the size of the transaction, the Income Tax Department may enquire as to where you obtained the funds.

4. Payment of credit card bills

Even if you pay your credit card payment in cash for Rs 1 lakh or more, you may be asked where the money came from. On the other hand, if you pay Rs 10 lakh or more in any financial year, the Income Tax Department may question you about where the money came from.

5- Buying stocks, mutual funds, debentures, or bonds

If a big sum of money is spent on stocks, mutual funds, debentures, or bonds, the Income Tax Department becomes aware. If a person conducts a transaction worth Rs 10 lakh or more, the Income Tax Department receives notification. In such cases, the Income Tax Department may enquire as to where you obtained the funds.

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