In the digital era, as the payment system has changed, the monitoring of them has also increased. The income tax department keeps an eye on how much money you are paying online or buying some goods through cash. If you are thinking that unless we tell the income tax department about our payment, it will come to know, then you can get into a bad situation. Let us tell you about 5 such methods of cash transfer, which you have to take care of. Otherwise, you may get an income tax notice someday.

Depositing a large amount in a savings account

If you deposit more than Rs 10 lakh in your savings account in one financial year, then the bank can give your information to the income tax department, after which you can be questioned. Giving a notice does not mean that you have evaded tax. However, the income tax department will ask you where you got so much money from. If your answers do not match, the department can impose a fine.

The amount deposited in FD

Apart from this, if you deposit more than Rs 10 lakh in FD for safe returns, then also you can come under the radar of Income Tax. You will have to tell the department about the source of your income.

Shares and Mutual Funds

If you invest more than Rs 10 lakh in any share or mutual fund, then even if you do not tell, that information will reach the tax department. After this, you may get a notice. The department doesn't need to send the notice immediately, but there are chances that you may come under its purview. You may have to give an account of your income.

Paying credit card bill in cash

If you use a credit card and pay its bill by cheque or offline to a bank or financial institution. If that amount is more than Rs 1 lakh every month, then the tax department can remember you. Can send a notice of inquiry.

Cash payment while buying property

Apart from this, if you buy property worth more than Rs 30 lakh, then you will have to tell about its source. At some places, this limit is 50 lakhs and 20 lakhs rupees. If you buy property worth more than this amount, you will have to tell the department about the source of income.

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