Government has encouraged cashless transactions in last four years. Income Tax Department has become vigilant against all your cash transactions these days. Banks, broker platforms, mutual fund houses have tightened their rules in last few years.
Public is discouraged to do cash transactions to track the traces of untaxed money.
Income Tax Department will now send a notice to your house even if you make slight violation. There are limits everywhere regarding cash transactions. If a person is doing transactions above cash limit then Income Tax Department will be notified of the transaction.
Here Are Top 5 Cash Transactions That Can Get You Income Tax Notice
Bank Fixed Deposits
Cash deposit in Bank FDs is permitted. However, there is a limit of Rs 10 lakh. If a person deposits more than 10 lakhs in cash then it will get him in big trouble.
When you are buying or selling a property you should not deal in cash transaction of more than 30 lakhs. In real estate deals, any transaction more than 30 lakhs is questionable.
Saving and Current Account
The limit for depositing cash in saving bank account is 1 lakh per individual. In a current bank account if a person deposits more than 50 lakhs in cash it is considered to be questionable.
Mutual Funds/ Bond/ Stock Market/ Debenture
Cash infusion in any of the above mentioned investment options should not exceed more than 10 lakhs. If a person does not maintains cash infusion limit then Income Tax Department will check your last ITR.
Credit Card Bill Payment
You cannot pay more than 1 lakh in cash while clearing your credit card bill. You will come under check of IT department if you will exceed the limit.