Taxman’s notice at your doorstep if you have made any of these transactions

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As responsible adults, nobody would like to have the taxman’s notice delivered at home.

But some transactions, even those that are not-so-high-valued, can also attract IT notice. It is better to be forewarned.

Cash deposit in FD

If a person deposits more than Rs 10 lakh in a financial year in one or multiple fixed deposits then Central Board of Direct Taxes could send him/her a notice to know the source of the money.

A person can deposit up to Rs 10 lakh in the bank quoting his PAN.

But if one deposits more than that amount in separate tranches in a single financial year, it might invite IT attention.

Cash deposits

An individual’s cash deposit cap in a bank account is Rs 10 lakh in a year. If a savings account holder deposits more than Rs 10 lakh in a financial year, the income tax department may issue a tax notice.

In the case of current accounts, the cap is Rs 50 lakh.

Credit Card bill

While paying credit card bills, one should not cross Rs 1 lakh limit in a single transaction. Violation of this cash limit in credit card bill payment doesn’t go well with the Income Tax Department and you might get a notice from the competent authority.

Immovable property

One can attract IT notice if he/she does not any purchase or sale of immovable property for an amount of Rs 30 lakh, or more, to the tax authorities. The property purchase/sale transaction must be reported on form 26AS; otherwise the person might attract an IT notice.

Shares, MF

Any person buying share, mutual funds or bonds aggregating to Rs 10 lakh or more in a financial year has to disclose the details to the Income Tax department.

A similar limit is set for reporting purchase of shares and mutual funds too. Otherwise, one might receive a notice.

Forex

Purchase of foreign currency worth more than Rs 10 lakh in a fiscal year by any individual has to be disclosed to the IT Department when the IT return is filed.

Otherwise, a strong notice will land at your home or office. International travellers’ cheques, forex cards or payment of debit or credit cards above the amount is also liable to attract an IT notice.