New Cash Transaction Rule: These days the Income Tax Department has become very cautious about account cash transactions.
The Income Tax Department and various investment platforms like banks, mutual fund houses, broker platforms, etc are In the last few years have tightened the cash transaction rules for the general public. Let's know about the complete details here today.
Now investment and lending institutions are allow cash transactions only up to a specific limit. A slight violation can send a notice from The Income Tax Department.
The income tax department is monitoring many such transactions like large cash transactions with banks, mutual funds, brokerage houses and property registrars. Let's discuss about such 5 transactions, which can land you in trouble.
Bank Fixed Deposit (FD)
You have to ensure that cash deposit in a bank should not exceed Rs 10 lakh. because The Central Board of Direct Taxes (CBDT) has announced that banks need to disclose these individual deposits in one or more fixed deposits that exceed the prescribed limit.
Bank savings account deposit
The cash deposit limit should not be in a bank account is Rs 10 lakh. If any saving bank account holder deposits more than Rs. 10 lahks during the financial year then the tax department can send an Income tax notice. Another side in current accounts, the limit is Rs 50 lakh.
Credit card bill payment
According to The Central Board of Direct Taxes (CBDT), payment of Rs. 1 lakh or more in cash in lieu of credit card bills should be informed to the tax department.
Sale or purchase of a real estate
For any investment or sale of immovable property for an amount of ₹30 lakh or more, The property registrar will have to disclose to the tax authorities.
Investment in Mutual Funds, Shares, Bonds and Debentures
Investors should ensure that their cash transactions in investing in mutual funds, stocks, bonds or debentures should not exceed 10 lahks in a financial year.
These are such 5 transactions, that can bring an income tax notice.