5 transactions in cash that can attract an income tax notice
Cash Deposits in Bank Accounts
The Income Tax Department (ITD) keeps a close eye on cash deposits in bank accounts. If you deposit more than Rs. 10 lakh in your savings account or Rs. 50 lakh in your current account in a financial year, the ITD may send you a notice.
Cash Investments
The ITD also keeps a close eye on cash investments. If you invest more than Rs. 10 lakh in shares, mutual funds, bonds, or debentures in a financial year, the ITD may send you a notice.
Cash Payments for High-Value Goods or Services
Cash payments of Rs. 2 lakh or more for high-value goods or services.This rule applies to businesses such as jewelers, car dealers, and real estate agents
Cash Payments towards Credit Card Bills
If you pay more than Rs. 1 lakh in cash towards your credit card bills in a financial year, the ITD may send you a notice.
Cash Transactions in Real Estate
If you buy or sell a property for more than Rs. 30 lakh in cash, the ITD may send you a notice.