Income Tax: If so much cash comes into your account in a year, you will get into legal trouble, keep this evidence together

Cash flow: Is more cash being deposited in your savings account than the limit? If you don’t take care of this, you may face serious trouble. The day more than Rs 10 lakh cash is deposited in your savings account in a year, you will get into legal trouble. You will get a notice from the Income Tax Department. Then a series of questions will start on your every answer. Evidence will be asked in support of each of your answers.

If evidence is not found then legal action will be taken

If you get stuck anywhere in answering or get lost or are unable to submit evidence, then the noose of the law will be tightened against you. Your bank accounts may be frozen and you may even end up in jail. Therefore, you should keep the proof every time cash is deposited in your account. That evidence must include answers as to who has deposited the cash in your account? Why did he deposit cash in your account? Has he deposited this amount for any business or any service provided by you? Or he has repaid any loan taken from you. Is it possible that he has contributed money to your personal account for the function or is it a gift? While searching for answers to all these questions, along with the evidence, you will also have to provide proof that whatever cash has been deposited in your account, you have shown it or are going to show it in your income tax return. If it is not so, then you will also have to prove that the amount deposited in your account is not taxable income.

Will get trapped even if more than Rs 2 lakh cash is deposited at one time

It is not that after depositing cash in your account for a year, when its limit exceeds Rs 10 lakh, the Income Tax Department will question you. In fact, even if more than two lakh rupees are deposited in your account by any one person in a day, you may have to face trouble. For this too, you will have to answer the same questions as you have to answer in case of total deposit of more than Rs 10 lakh in a year. A similar notice will also be served to you from the Income Tax Department.

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