Income Tax Notice: Avoid cash transactions, otherwise income tax notice may come

News India Live, Digital Desk: Income tax notice: If you are thinking of selling your property, be careful! Often people think of taking some part in cash in the property deal so that tax can be saved. However, this can prove to be your biggest mistake and you can give you notice of Income Tax Department. The Income Tax Department is now keeping a close watch on such cash transactions and can also impose heavy fines for violating the rules.

What do the rules of income tax say?

According to Income Tax laws, you cannot do a cash transaction of more than Rs 20,000 in the sale of property. This rule applies not only by selling home or land, but to the purchase and sale of any kind of real estate. If you take or give more cash than this limit, it will be considered a violation of income tax rules directly.

Why should not take cash in property sales,

1. Income tax department’s eyes: The Income Tax Department now keeps a strict monitoring on digital transactions and large cash transactions. The department can easily match the price recorded during the registry of the property and the information of your bank accounts. If any discrepancy is found, the notice can be sent to you immediately.

2. Reinnces on black money: The government is constantly trying to curb black money. The cash transaction in the property promotes black money, on which the Income Tax Department is strict.

3. To penalty and jail: If you are caught breaking the rules, then you can be fined up to equal to the value of the property sold. There is also a provision for jail punishment in some serious cases.

4. Benami Property Act: Under the Benami Property Act 2016, if you buy a property in someone else’s name and the real owner is someone else, such a property can be declared benami and the government can seize it. Cash transactions are often used in cases of benami property.

Then what should we do?

Always make complete transactions of your property through bank transfer (check, RTGS, NEFT). By doing this, not only will you avoid income tax notice, but your financial transparency will also remain. It will also protect you from any legal or financial problem in future. Remember, it is not prudent to take a lot of trouble in the greed of a little savings.

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