Cash Transaction Latest Update: There are many such transactions, which are monitored by income tax. If you also do any of these cash transactions, then definitely read this news once…. otherwise notice can come straight home.
In the last few years, the Income Tax Department and various investment platforms like banks, mutual fund houses, broker platforms etc. have tightened the rules of cash transactions for the general public.
Now these investment and lending institutions allow cash transactions only up to a certain limit. If it is violated, the Income Tax Department can send a notice.
There are many such transactions, which are monitored by income tax. If you do large cash transactions with banks, mutual funds, brokerage houses and property registrars, they will have to inform the Income Tax Department.
Bank Fixed Deposit-
Cash deposit in bank FD should not exceed Rs 10 lakh. The Central Board of Direct Taxes (CBDT) has announced that banks will have to disclose whether individual deposits in one or more fixed deposits exceed the prescribed limit.
Savings Account Deposit-
The limit for cash deposit in a bank account is Rs 10 lakh. If a savings account holder deposits more than Rs 10 lakh during a financial year, the Income Tax Department can send an Income Tax notice. Meanwhile, cash deposits and withdrawals in a bank account that cross the limit of Rs 10 lakh in a financial year should be disclosed to the tax authorities. In current accounts, the cap is Rs 50 lakh.
Credit Card Bill Payment-
As per CBDT rules, cash payments of Rs 1 lakh or more against credit card bills should be reported to the Income Tax Department. Additionally, if 10 lakh or more is paid in a financial year to settle credit card bills, the payment should be disclosed to the Income Tax Department.
Sale or purchase of immovable property-
The property registrar will have to inform the tax authorities about any investment or sale of immovable property worth Rs 30 lakh or more. Therefore, in the purchase or sale of any real estate property, taxpayers are advised to report their cash transactions in Form 26AS as the Registrar of Property will definitely report the same.
Investment in shares, mutual funds, debentures and bonds-
Investors investing in mutual funds, stocks, bonds or debentures should ensure that their cash transactions in these investments do not exceed Rs 10 lakh in a financial year.
The Income Tax Department has prepared the Annual Information Return (AIR) Statement of Financial Transactions to trace high-value cash transactions of taxpayers. On this basis, the tax authorities would collect details of transactions of abnormally high value in a particular financial year.
