5 Cash Transactions that can get you an Income Tax Notice

  1. Savings/Current account For an individual, the cash deposit limit in a savings account is ₹ 1 Lakh. Similarly, for current account holders, the limit is ₹ 50 Lakh
  2. Credit Card bill payment While paying credit card bill, one should not cross the ₹ 1 Lakh limit.
  3. Bank FD (fixed deposit) Cash deposit in bank FD is allowed but it should not go beyond ₹ 10 Lakh.
  4. Mutual Fund / Stock Market / Bond /Debenture → investment options doesn't go beyond ₹ 10 Lakh limit.
  5. Real estate While buying or selling a property, one must make sure that a cash transaction above ₹ 30 Lakh is questionable as the income tax department discourages cash transactions beyond this limit in a real estate deal.
Disclaimer: Every effort has been made to avoid errors or omissions in this material. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. In no event the author shall be liable for any direct, indirect, special or incidental damage resulting from or arising out of or in connection with the use of this information.

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