These High-Value Transactions Can Get You Notices From the Income Tax Department

There are some high-value transactions for which the tax authority can directly issue notices to you. Therefore, you should know what these transactions are to avoid income tax notices. Let us take a look at these transactions.

Cash Deposits Over Rs. 10 Lakh

Depositing over Rs. 10 lakh in cash in your bank account can alert the Income Tax Department and may attract a tax notice.

Foreign Travel Above Rs. 2 Lakh Reported to Tax Department

If you spend over Rs. 2 lakh on foreign travel in a year, that information is shared with the Income Tax Department.

Paying Credit Card Bills With Cash

The Income Tax Department has the authority to inspect a transaction involving the payment of a credit card bill worth Rs. 1 lakh and above by using cash. They suspect any fraud, then the tax department can send you a tax notice along with a fine and penalties.

Investments Over Rs. 10 Lakh in Mutual Funds and Shares

If you have invested up to Rs. 10 lakh in Mutual Funds, stocks or bonds annually, then the Income Tax Department can issue a tax notice to you.

High-Value Cash Business Transactions

If you do business transactions in cash above Rs. 50,000, the department can ask for details and keep an eye on such transactions.

Property Purchase Above Rs. 30 Lakh

If you buy a property worth Rs. 30 lakh or above, the Income Tax Department automatically gets the details.

High Credit Card Spending

If you spend over Rs. 2 lakh in a year using your credit card, the Income Tax Department may start monitoring your transactions, as high spending can increase possibilities for tax evasion.