If you make significant transactions and do not take care that no rule is broken, then you are in danger. The Income Tax Department fully keeps an eye on all your banking transactions. If any discrepancy is found, a direct notice can come.
These are such transactions in which even a CA will not be able to help you if caught. Especially, keep an eye on transactions like cash deposits, heavy expenditure on foreign travel, and credit card payments. Let us know which transactions can put you in trouble. Do you also want that you do not get any notice? So let’s know.
Spending more than ₹ 2 lakh on foreign travel
If you have spent more than ₹ 2 lakh on foreign travel in a year, then your data goes to the Income Tax Department.
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Credit card expenditure of more than ₹ 2 lakh: Know how to avoid it!
If you spend more than ₹2 lakh annually on credit cards, the Income Tax Department keeps an eye on you. The Large transactions may be attract the attention of the income tax department.
Credit card bill payment in cash
If a person pays a credit card bill in cash amounting to ₹1 lakh or more, the Income Tax Department has the right to investigate this transaction. If this transaction is found to be suspicious or it is related to black money smuggling, an income tax notice can be sent. Apart from this, fines or penalties can also be imposed.
Investment of more than the ₹10 lakh in mutual funds and the shares markets
If you have invested more than ₹10 lakh in mutual funds, shares, or bonds in a year, the Income Tax Department can send a notice.
Property investment of more than ₹30 lakh
If you have purchased property worth ₹30 lakh or more, the Income Tax Department automatically gets information about it.
Cash deposits of more than ₹10 lakh
Depositing large amounts of cash in a bank account may attract the attention of the Income Tax Department. As soon as you deposit more than ₹10 lakh in cash, the chances of getting a notice increase.
Business transactions in cash
The Income Tax Department keeps an eye on business transactions in cash. The department may seek information from you on business transactions of more than ₹50,000.
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