Income Tax: How much cash can you deposit in bank account? Learn how to avoid the eye and notice of the Income Tax Department

News India Live, Digital Desk: Do you know how much cash you can deposit in your bank account, which will not be seen by the Income Tax Department? Actually, there is no direct upper limit to deposit cash in the bank, but the Income Tax Department is closely monitored on transactions above a certain amount. If you do not take care of these limits and do not tell your source of income properly, then you can get income tax notice.

Income tax department Nowadays it monitors all your big financial activities. Banks and other financial institutions have to directly inform the Income Tax Department about certain transactions. This is called ‘Statement of Financial Transaction – SFT) or’ Annual Information Statement – AIS).

Which transactions are on the eyes of the Income Tax Department and what are their limits?

1. Savings Account in Savings Account:

   • If you in your savings account More than Rs 10 lakh in a financial year If we deposit cash, then the bank will inform the Income Tax Department.

2. Cash deposit in the current account:

   • This limit is high for current accounts. If you More than Rs 50 lakh in a financial year If you deposit cash, then it will also be reported to the department.

3. Cash deposit in fixed deposits (FD):

   • If you 10 lakhs or more in any fixed deposit They deposit cash, whether it is at once or several times in a financial year, it will also be reported.

4. Cash payment of credit card bill:

   • If you bill your credit card Cash amount of more than 1 lakh rupees If you repay, credit card companies give information to the department.

5. Property procurement or sale (in cash):

   • If you Buy or sell any property worth Rs 30 lakh or more in cash If they are, the registrars will inform the Income Tax Department.

6. Cash investment in share, mutual funds or bonds:

   • If you share, mutual funds, bonds or debentures Cash amount of Rs 10 lakh or more If we invest, then these transactions are also under the supervision of the department.

What will happen if the border crosses?

If you cross these boundaries and the source of these transactions does not match your declared income, or you have not disclosed them in your Income Tax Return (ITR), then you can get income tax notice. In such a situation, the department can ask you for clarification of the source of money. If you are unable to give a satisfactory answer, you can be fined, which Income tax amount up to 200% It is possible

What to do to avoid notice?

• Reveal income correctly: Honestly declare your income tax return (ITR) in your income tax return (ITR).

• Keep transactions records: Keep the appropriate record of all major financial transactions and documents (eg sales receipt, proof of income).

• Check AIS and Form 26AS: Check your annual information details (AIS) and Form 26AS regularly so that you know what financial information you have with the Income Tax Department.

• Seek expert advice: If you are doing big transactions or you have any doubt about your source of income, it would be best to consult a chartered accountant (CA) or tax advisor.

Remember, the purpose of the Income Tax Department is to stop tax evasion. If you are transparent and honest towards your income and transactions, then you have no need to worry.

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