Want To Avoid Income Tax Notices? Here Are 5 Key Transactions To Watch Out For
Avoid penalties by following income tax rules. Transactions like fixed deposits, savings deposits, real estate, mutual funds, and foreign assets over Rs 10 lakh can trigger IT notices.
In the quest to save income tax, many individuals in our country often make mistakes that can lead to penalties. Consequently, the Income Tax Department may send notices directly to our home. It is crucial to thoroughly understand and adhere to all income tax regulations.
According to financial experts, income tax matters should not be handled without professional guidance. Ignoring this advice could result in a visit from Income Tax officers.
related stories
Here are the transactions that can trigger such an outcome:
Fixed Deposits: Fixed deposits are a secure and popular investment choice, offering guaranteed returns at the end of the term. However, if an individual makes a fixed deposit exceeding Rs 10 lakh in a financial year, they may receive a notice from the Income Tax Department.
Savings Account Transactions: Conducting transactions in savings accounts is common, and many people maintain multiple accounts. However, there are rules for managing these accounts. Depositing Rs 10 lakh or more in a savings account within a financial year can prompt the Income Tax Department to send a notice.
Real Estate Investments: Real estate has become a highly attractive investment option, yielding substantial returns in a short period. However, investing Rs 30 lakh or more in real estate can result in a notice from the Income Tax Department.
Mutual Funds and Bonds: The popularity of investing in mutual funds is growing, with many people considering it a safe option for long-term returns. Bonds and debentures are also seen similarly. Nevertheless, an investment of Rs 10 lakh or more in mutual funds and bonds may lead to a notice from the Income Tax Department.
Foreign Assets: There are limits on purchasing foreign currency. Exceeding these limits by spending Rs 10 lakh or more on traveller’s cheques, foreign currency cards, or debit and credit cards can attract a notice from the Income Tax Department.
Handling these five transactions with care is essential to avoid notices and penalties from the Income Tax Department. One should stay vigilant and ensure compliance with all relevant regulations.
- Location :
- First Published: