Speaking on the various cash transactions that may lead to income tax notice Mumbai-based tax and investment expert Balwant Jain said, "One needs to remain alert while doing any kind of high value cash transaction because the Income Tax Department has become highly vigilant about the cash transactions. So, there is need to know the high value cash transaction limit and one should keep one's cash transactions inside that limit and avoid getting any kind of income tax notice." If a savings account holder deposits more than ₹1 lakh in one's savings account, then the income tax department may send income tax notice. Violation of this cash limit in credit card bill payment doesn't go well with the Income Tax Department. Failing to maintain this cash infusion limit may lead to income tax department checking your last Income Tax Return (ITR).

Source: Mint May 07, 2021 05:34 UTC