Income Tax Notice: Important information for those who transact in cash, these people are on the radar of Income Tax Department

Income Tax Department: Recently, people have started using online banking services for money transactions, but the trend of doing transactions in cash is still continuing. 

If you also make purchases in cash, then today's news is very good for you. Let us tell you that the Income Tax Department sends notices to those who use cash excessively. The Income Tax Department explained this strictness in depth.

Let us tell you that the Income Tax Department is very strict these days due to financial irregularities. The department keeps an eye on all the people who use cash for large transactions. You should know the rules if you also use cash often.

You need to be careful if you make most of your purchases in cash. The Income Tax Department may issue a notice in your name. You may be asked about the source of the money if there are a lot of cash transactions in your transaction history.

Let us tell you that the Income Tax Department (Income Tax New Rule 2025) is strictly taking action against financial irregularities. In such a situation, all the people who use money on a large scale can be on their radar. Today we are telling you about the rules of transactions in cash (transaction history).

There cannot be more than 10 lakh cash in bank account or savings account

If you invest Rs 10 lakh or more in cash in any of your bank accounts in a financial year, the Income Tax Department can ask you for information about it. 

Let us tell you that there cannot be more than Rs 50 lakh in a current account. At the same time, you cannot put more than Rs 10 lakh in cash in a year in FD. If you want to deposit more than this amount, then you can pay online or through cheque.

Use cash to invest or pay bills

If you use cash on bills of more than one lakh rupees, your information may be sought. At the same time, you cannot take more money for investing.

If you buy shares, mutual funds or bonds, then keep in mind that for this also you cannot have more than 10 lakh cash in a financial year. If you do this, you may get a notice from the Income Tax Department.

Rules for buying property in cash (use of cash for buying property)

Cash is quite prevalent in the real estate sector. It is important to know the rules for paying in cash while buying land. Note that the Income Tax Department sends the property registrar's report to the Income Tax Department if large amounts of cash are used. 

The Income Tax Department gets information if you buy or sell property worth more than Rs 30 lakh. You may get into trouble, so these rules should always be kept in mind.