Income Tax Notice Reasons: Often people get income tax notice due to carelessness and lack of information. In such a situation, many times people get nervous. Let us tell you, no matter what you do (Income tax notice), there is a limit to everything and the Income Tax Department takes special care of this rule.
Actually, whenever there is a large number of transactions from a person’s account, he gets a notice (Bank account rules) in these situations. Let us understand the income tax rules in detail in the news so that you never have to face any problem-.
Many times people make the mistake of transacting more money than the limit from their savings account (savings account transaction limit). Due to this mistake, a notice from the Income Tax Department comes to their home. Many times the bank even blocks the account. If you want to save yourself from this problem (transaction rules) then you should know about the rules.
Why does income tax notice come?
If you make a transaction of more than 10 lakh rupees from your account and do not give its information to the Income Tax Department (ITR Return File) in your ITR, then a notice can come to your house. Not only this, there is a possibility of getting a notice even if the credit card bill is more than 1 lakh. If you make its repayment through cash (cash repayment). Even if you deposit an amount of more than 30 lakh in cash while buying a house, the department sends you a notice (Income tax notice) to ask the source of that money.
How to protect yourself?
Income tax can send you notice in two ways. One way is offline and the other is online. Once you receive the notice, you have to verify it with a CA or by yourself (Income tax penalty) whether the notice is correct. If there is any such information in it, for which a penalty has been imposed on you due to not providing proof, then you can once again file ITR and tell the complete details to the department. By this the department withdraws the penalty imposed on you.
How much money can you keep?
In a normal savings account, you can deposit and withdraw as much money as you want. There is no limit for depositing or withdrawing money. However, there is a limit for depositing and withdrawing cash by visiting the bank branch (online bank transaction), but through cheque or online medium, you can deposit from Rs 1 to thousand, lakh, crore, billion or any amount in the savings account (saving account rules) and can also maintain it as balance.
Bank companies have to respond to the tax department every year if customers withdraw an amount of Rs 10 lakh or more from the bank. Under the tax law, the bank has to provide information about those accounts during the current financial year (current account rules). This limit is seen overall for cash deposits of Rs 10 lakh or more in one or more accounts of taxpayers in a financial year.
However, there is generally no fixed limit for deposits in a savings account. Sometimes banks increase or decrease the limit depending on the account. Whenever the cash deposit limit in your savings account exceeds Rs 50,000 (income tax rules), you have to provide your PAN card details to the bank. Let us tell you that this rule also applies to transactions related to cash deposits and withdrawals for the purposes of investment in shares, mutual funds, debentures, FDs, credit card expenses, transactions in real estate, purchase of foreign currency etc. linked to your savings account.
What is the transaction limit
People are using payment apps like Google Pay, Paytm and PhonePe nowadays. This limit has been fixed for them. According to the National Payments Corporation of India (NPCI), a person cannot transfer more than 1 lakh rupees through UPI in 24 hours. If you want to transfer more money from your savings account, then you will have to use services like NEFT, RTGS available in your bank’s app (UPI payment).
Banks also charge for this as per their own discretion. Let us tell you that with the help of NEFT service, you can transfer as much money as you want starting from 1 rupee. There is no maximum limit. For this, banks take up to 24 hours. Sometimes it also happens quickly. Talking about RTGS, you can transfer at least 2 lakh rupees and maximum as much money as you want through this service (online payment transfer). This transfer happens immediately.
