Because they are unaware of the transaction restriction, customers frequently make transactions mindlessly. Let us inform you that numerous transactions will put you under income tax scrutiny right away. Certain exceptional transactions need notification to the Income Tax Department (IT cash transaction guidelines). Inform us about those six transactions through the news, as they may land you in hot water later.
Rules Regarding FD Transactions
Avoid depositing more than Rs 10 lakh in a single year if you invest in a fixed deposit, since this could result in a notification from the Income Tax Department. You may receive a notification if you deposit more than this amount, regardless of how often you deposit it, whether it is in cash or digitally, or both.
How much cash can be deposited in FD?
You can provide the revenue Tax Department (IT Rules on Cash Transaction) with information about your revenue source and receive a notice by doing this. In this case, you should use a check to deposit the majority of the funds into the FD. The Income Tax Department's regulations state that you must notify the CBDT of any cash deposits of at least Rs 10 lakh throughout a fiscal year.
Rules for cash deposit in the bank account
By the CBDT regulations, a co-operative bank must notify the Income Tax Department if it deposits Rs 10 lakh or more in one or more of its accounts during a fiscal year. This regulation does not apply to time deposits or current accounts. These regulations allow the Income Tax Department to query funds if you deposit more than the set amount in an FD.
Guidelines for real estate transactions:
At the time of property purchase or sale, transaction limits have also been established. The property registrar is required by law to notify income tax authorities of all transactions involving the purchase or sale of real estate valued at Rs 30 lakh or more. In this case, the Income Tax Department may interrogate you about the source of your funds and about such a large transaction (a high-value transaction).
When shares or mutual funds are purchased, notice may be given.
For your knowledge, let us also mention that if you deal in shares, mutual funds, debentures, and bonds on a regular basis, you may run afoul of the cash transaction restrictions. Companies or institutions are required by law to notify the income tax department if an individual purchases shares, mutual funds, debentures, and bonds for Rs 10 lakh or more during a fiscal year.
You might receive a notification about your credit card statement.
Even if you pay a credit card bill in cash once, you could still receive a warning if the amount is greater than one lakh. As per the regulations, you might be questioned about the source of funds if you pay a credit card bill of more than Rs 10 lakh in cash during a fiscal year. You must provide the income tax authorities with information if you do anything similar.
Rules Regarding FD Transactions
Avoid depositing more than Rs 10 lakh in a single year if you invest in a fixed deposit, since this could result in a notification from the Income Tax Department. You may receive a notification if you deposit more than this amount, regardless of how often you deposit it, whether it is in cash or digitally, or both.
How much cash can be deposited in FD?
You can provide the revenue Tax Department (IT Rules on Cash Transaction) with information about your revenue source and receive a notice by doing this. In this case, you should use a check to deposit the majority of the funds into the FD. The Income Tax Department's regulations state that you must notify the CBDT of any cash deposits of at least Rs 10 lakh throughout a fiscal year.
Rules for cash deposit in the bank account
By the CBDT regulations, a co-operative bank must notify the Income Tax Department if it deposits Rs 10 lakh or more in one or more of its accounts during a fiscal year. This regulation does not apply to time deposits or current accounts. These regulations allow the Income Tax Department to query funds if you deposit more than the set amount in an FD.
Guidelines for real estate transactions:
At the time of property purchase or sale, transaction limits have also been established. The property registrar is required by law to notify income tax authorities of all transactions involving the purchase or sale of real estate valued at Rs 30 lakh or more. In this case, the Income Tax Department may interrogate you about the source of your funds and about such a large transaction (a high-value transaction).
When shares or mutual funds are purchased, notice may be given.
For your knowledge, let us also mention that if you deal in shares, mutual funds, debentures, and bonds on a regular basis, you may run afoul of the cash transaction restrictions. Companies or institutions are required by law to notify the income tax department if an individual purchases shares, mutual funds, debentures, and bonds for Rs 10 lakh or more during a fiscal year.
You might receive a notification about your credit card statement.
Even if you pay a credit card bill in cash once, you could still receive a warning if the amount is greater than one lakh. As per the regulations, you might be questioned about the source of funds if you pay a credit card bill of more than Rs 10 lakh in cash during a fiscal year. You must provide the income tax authorities with information if you do anything similar.
click and follow Indiaherald WhatsApp channel