Income Tax Notice: If you want to avoid income tax notice, then do not do these 6 transactions by mistake.


Many times, in order to save income tax, people make such mistakes, due to which they have to suffer huge losses. In such a situation, you should always keep your transactions under the Income Tax Act. If you do not do this then you may face trouble. Let us tell you that the Income Tax Department keeps a close watch on long-term or large-scale transactions. At the same time, if you do any cash transaction then your name can come on the income tax radar.

In such a situation, there are some special transactions which you should not do in a financial year. We are going to tell you about these transactions below.

Let us know about those 6 transactions, which are important to avoid, because they can lead to the risk of income tax notice.

Notice can be received on FD

If you deposit Rs 10 lakh or more in a fixed deposit (FD) in a financial year, this transaction may come under the radar of the Income Tax Department. Whether it is deposited in one go or multiple times, whether it is cash or digital transaction, the Income Tax Department may question you about the source of this money. To avoid this situation, it is better to deposit money in FD through cheque, because if an amount of more than Rs 10 lakh is deposited in cash in a financial year, banks have to inform it to CBDT.

cash deposit in bank account

If an amount of Rs 10 lakh or more is deposited in cash in any of your bank accounts in a financial year, then the bank has to give this information to the Income Tax Department. This rule is similar to FD, and current account and time deposits are excluded from it.

property transaction

If you buy or sell property for an amount of Rs 30 lakh or more, the property registrar has to report this transaction to the Income Tax Department. On such high value transactions, the Income Tax Department may ask you where such a huge amount came from. In such cases, you may have to provide certified documents and details of the source of money.

Purchase of shares, mutual funds, debentures and bonds

If you invest in shares, mutual funds, debentures or bonds and you have invested Rs 10 lakh or more in a financial year, then this transaction can also come under the radar of the Income Tax Department. To avoid such transactions You should maintain records of your income and income sources properly.

credit card bill

If your credit card bill is more than Rs 1 lakh and you pay it in cash in one go, the Income Tax Department may send you a notice. In this, you will be required to give information about this payment in your income tax return.

Mutual funds or other investments

If you make large-scale transactions through cash in mutual funds or any other investment scheme, the Income Tax Department may ask questions about the source of your investments. These transactions are usually worth Rs 10 lakh or more, information about which is given to the Income Tax Department by the concerned companies.

You should work carefully after understanding all these transactions. If you need to do these transactions, then inform the Income Tax Department about them in advance, so that there is no problem later.