Banks have fixed the limit on their behalf, how much cash can be withdrawn from ATMs and how many times they can withdraw. If there is too much violation, then the Income Tax Department can take action.
If you too are fond of spending the money of notes, then read this news. The news is for cash blowers. If you are more focused on blowing cash instead of digital payment, then know that you have an eye on the income tax department. Is the government not doing anything to promote digital transactions? People get out of notes and coins and make transactions through mobile phones or computers, the effort is being increased. But there is also a group of people who believe in spending cash. Such people do not like digital transactions.
In order to reduce cash costs, increase the trend of digital, the Income Tax Department and banks, mutual fund houses, broker platforms etc. are insisting on reducing cash transactions. In the last few years, banks have tightened many rules to reduce the circulation of cash. Such as collection of fees from ATMs for more transactions, fixing the cash withdrawal limit from ATMs etc. Its only purpose is to divert people from cash to digital so that the government’s expenditure on notes is reduced. Reduce the pressure to carry banks’ chests, ATMs and notes.
Banks have fixed the limit on their behalf, how much cash can be withdrawn from ATMs and how many times they can withdraw. If there is too much violation, then the Income Tax Department can take action. There are 5 main cash transactions on which income tax notice can come.
1-bank FD (fixed deposit)
Cash deposit is allowed in the bank’s FD, but it should not be more than Rs 10 lakh. This is not good for both – the depositor and also for the bank which has FD. The bank whose FD account will have more deposits than this limit, and the depositor can get notice from income tax.
The person who invests money in real estate should always keep in mind that its limit is right up to 30 lakh rupees. If you go over it, you can come under the circle of questions. In the real estate deal, the Income Tax Department allows up to Rs 30 lakh cash to buy or sell a property. After that you can come to notice. Therefore, avoid cash transactions after 30 lakhs.
The limit of cash deposit in a savings account is Rs 1 lakh. If a person deposits more than Rs 1 lakh cash in a savings account, then the Income Tax Department can send a notice to him. This limit is Rs 50 lakh for current account. If deposited on this, the Income Tax Department can take action against you.
4-Mutual Fund / Stock Market / Bond / Debenture
Those who invest money in mutual funds, stock market, bonds or debentures, have to keep in mind that once more than 10 lakh rupees cannot be deposited in cash. Violation of this rule may result in action against you. You can see its details in the Income Tax Return (ITR).
5-Credit Card Bill Payment
When depositing credit card bills, be careful about cash deposits. Credit card bills cannot be deposited in cash more than 1 lakh rupees at a time. If this rule is violated, then the Income Tax Department can issue notice to you.
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