Cash transaction rules: Many types of rules have been made by the Income Tax Department regarding the transaction of money. One of those rules is also about the transaction limit (cash transaction limit) to be done from the bank account in a year.

No account holder can transact more than the fixed amount in a year from his bank account. If this is done, the Income Tax Department immediately tightens its grip on him and a notice is sent asking for a reply. If you know these rules (income tax rules) related to the limit of transactions from the bank account in advance, then you will benefit.

The rule for depositing money in the account -

Many types of big transactions remain on the radar of Income Tax. If not taken care of, the department immediately sends a notice (IT notice) and seeks a reply. In a financial year, if any person deposits cash (cash deposit rules) of Rs 10 lakh or more in one or more accounts, then its information has to be given to the Income Tax Department. If you do not do this, you will have to face the notice of the department (IT notice rules) and will have to reply to it. If you do not reply, the department can also take further action.

On depositing cash in FD -

If you make an FD of more than one lakh rupees (Fixed deposit rules) or deposit this amount in cash in FD, you will have to inform the Income Tax Department. However, the banks themselves give this information to the Income Tax Department (IT department). If you do not do this, you can get a notice from the Income Tax Department and can be asked about the source of money. Problems can increase further if any such information is hidden.

Rules regarding credit card bills -

If you make a payment of Rs 10 lakh (cash transaction rules) or more anywhere one or more times in a financial year, then you have to inform the Income Tax Department. Apart from this, you can also get a notice from the Income Tax Department if you pay a credit card bill of more than one lakh rupees (credit card rules) in cash.

Do not use so much cash to buy property-

Transaction of more than Rs 30 lakh in cash (cash payment rules for property) for property is also wrong. If you do not give this information to the Income Tax Department, you may get a notice (income tax notice). The department can ask for the source of the money. If the department is not satisfied with your answer, then the department can also impose a fine.

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.