Income Tax Rules: Even if you do not keep track of your annual income and expenses. However, the Income Tax Department keeps a complete account of the annual income and expenses of the people. Along with this, the Income Tax Department also keeps a close eye on every small and big transaction (income tax transaction rules). Many people make a big mistake to save income tax, which costs them a lot.
Action can be taken in this situation-
Customers need to keep in mind the transaction limit to be done in a year. As soon as the rules made by the department regarding transactions (cash transaction rules) are violated, action will be taken against you by the Income Tax Department.
1. Depositing so much money in FD will be costly-
If you deposit more than Rs 10 lakh in FD (Fixed Deposit) in a financial year, then also a notice can be sent to you by the department (Income tax notice). Apart from this, you will also have to give information about the source of its income. After this, you will have to respond to the notice.
2. These are the rules regarding cash transactions-
If a cash transaction of up to Rs 2 lakh is done in a day (cash transaction rules), then also a notice from the department can be sent. Apart from this, if you pay a credit card bill of Rs 1 lakh in cash, then you may have to face difficulties. There can also be a fine and punishment for this.
3. These are the rules regarding deposits in savings accounts-
If you deposit more than Rs 10 lakh in one or more accounts in a financial year (Cash deposit rules), then in this situation a notice can be sent to you by the Income Tax Department. The department can also demand a reply by sending a notice to you.
4. Limit of buying immovable property in a year-
If you purchase property worth more than Rs 30 lakh in a year, then you will have to give its information to the Income Tax Department. Otherwise, a notice from the Income Tax Department can be sent to you.
5. These are the rules for investing in the stock market-
If you purchase mutual funds or debentures bonds worth more than 10 lakhs in the stock market in a financial year, then a notice can be sent by the income tax department.
6. Notice in case of foreign assets-
If you purchase foreign currency worth 10 lakhs or more in a year, then a notice can be sent immediately by the income tax department. Debit cards, credit cards, foreign currency cards travellers cheques, etc. are included in the purchase of foreign currency.
Disclaimer: This content has been sourced and edited from Hr Breaking. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
