Have cash? Don't do this; Income tax department has a message for you
In the last few years, Income Tax Department has tightened the noose around illegal transactions, black money and tax evaders.
In the last few years, Income Tax Department has tightened the noose around illegal transactions, black money and tax evaders. Many new changes have been introduced to the IT Act post demonetisation move by the Centre in 2016. If you think the tax department keeps a track of only taxpayers, then you are in a delusion. The tax department can have access to even a very small transaction performed by you. Your donations or cash gifts to near and dear ones, everything is under the scanner of the IT department and you are likely to receive a notice if you violate the law.
Therefore, it's better to know the rules laid by the tax department to avoid getting a notice from the tax authorities. Nowadays, the tax department is promoting 'Clean Transactions, Cleaner Economy' and is warning people to avoid being a part of any illegal transaction. The department has laid down some 'Don'ts':
* Accept cash of Rs 2,00,000 or more in aggregate from a single person in a day or for one or more transactions relating to one even or occasion
* Receive or repay Rs 20,000 ore more in cash for transfer of immovable property
* Pay more than Rs 10,000 in cash relating to the expenditure of business/profession
* Donate in excess of Rs 2,000 in cash to a registered trust/political party
A penalty may be levied/deductions claimed can be disallowed in case of violations.
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"Any information regarding such violations or Black Money or Benami transactions can be given to the jurisdictional Principal Commissioner of Income Tax and can also be emailed on email@example.com," the department said.