If you want the notice of the Income Tax Department not reach your door, then it is very important to take care of some important things. Many times we inadvertently make such mistakes, due to which he may face heavy fines and legal action later. If you are already alert and do financial transactions properly, then the income tax can avoid the eyes of the department. Let us know which mistakes should be avoided.
How does the notice of Income Tax Department come?
The Income Tax Department keeps a close watch on your financial activities, especially when your transactions are more than the fixed limit. Today we will tell you about 7 such transactions, which should not be forgotten with credit cards. If you make any of these mistakes, then you can get a direct income tax notice. Especially if you use credit card regularly, then this information is very important for you.
Who is eyeing the Income Tax Department?
If you spend more than 2 lakh rupees annually with credit cards, then the Income Tax Department can automatically look at you. The department may suspect what your income sources are and you are paying tax properly or not. For example, if you have spent more than 2 lakh rupees on a foreign trip, then your travel information can come in the records of the department and can also be investigated.
Cash payment of credit card bill
If you have paid the credit card bill in cash of Rs 1 lakh or more, then the Income Tax Department gets information about it. The department has every right to check such transactions. If they see any disturbance or black money transaction in it, a notice can be issued against you. A heavy fine or penalty can also be imposed.
Ever watching buying big property
If you have purchased a property, which costs Rs 30 lakh or more, then its information directly reaches the Income Tax Department. Whether you have purchased a property loan or in a cash, the department knows this. If there is no coordination between income and property procurement in your file, the department can take action against you.
Big cash deposit in bank account
If you have deposited a large amount of money in your bank account at one time or repeatedly, then the Income Tax Department can get an eye on you. Especially when this amount is more than 10 lakh rupees. Such transactions also get information directly to the department and the risk of investigation increases.
Expenditure on foreign travel
If you travel abroad and spend hugely through cards there, then the Income Tax Department is alerted. The expenditure incurred abroad is seen in the records of the department and if your announced income does not match this expense, the notice is sure to be received.
Huge investment in investment and stock market
If you have invested a large amount in the stock market, mutual funds or other investment mediums and have not shown its account in your tax return, then the problem may increase. It is also necessary to pay tax on the income earned from investment and if you hide it, the department can send notice.
If you take care of these things and maintain transparency in financial transactions, then you can easily avoid the notice of Income Tax Department. Remember, today’s small vigilance can protect against great trouble in future.
