If you are doing higher cash transactions lavishly in your day-to-day life. But beware of the latest Income Tax laws amended by the current Modi Government.
Before doing higher transactions, Let us know which transactions may levy Income Tax Notice on you-
1.Limit on Savings and Current a/c’s-It would not be advisable to deposit 1 Lakh or more in savings a/c and not more than 50 Lakh Rupees in your Current a/c. If you are doing beyond this, you may levy income tax notice
2.Limit on Bank FD– The depositor should not deposit more than 10 Lakhs in Fixed Deposits(FD’s). If you do so, you have to show the income source
3.Limit on Credit Card Bill Payment-If you are using credit cards and paying 1 Lakh rupees or more, you may be in danger zone. You have to reveal all of your sources of income
4.Limit on Real Estate Transactions-If you are buying or selling “real”(Physical)assets worth 30 Lakhs or more; the deal would be recorded in the income tax database. You have to show proof, if the income tax department prompts for income source
5.Investing in shares and Mutual Funds– If you are a investor/trader and investing in shares and mutual funds for more than 10 Lakhs, The IT Department will cross-check with your last IT Return.
Don’t neglect the IT Rules; In today’s digital era each and every transaction is recorded in Income Tax Database! So Be aware!