Income tax keeps an eye on our every transaction. But is there any tax on cash transactions or can Income Tax send a notice? Or how much cash transaction can take place between your wife or father and son? If you also have these questions in your mind, then let us know their answers…
If you also transact money between father and son or between husband and wife, then this news is useful for you. Actually, every transaction of ours has an eye on income. In such a situation, a question arises in the minds of many people whether income tax notice can be received even on cash transactions? Let us know how much cash transaction you can do in your family.
Income tax sends notice?
According to tax experts, if you give money every month for household expenses or give money as a gift, then the wife is not liable for income tax. Both these types of amounts will be considered as the income of the husband. The wife will not receive any notice from the Income Tax Department for this amount.
But, if the wife repeatedly invests this money somewhere and gets income from it, then tax will be payable on the income. In other words, the investment income calculated on a year-to-year basis will be considered as the wife’s income, on which tax will have to be paid.
Under Section 269SS and 269T of Income Tax, penalty can be imposed on cash transactions of more than Rs 20 thousand. However, there are relaxations in this in many cases.
There is exemption in these cases
For example, there is no penalty on transactions between father-son, husband-wife and some close relatives. Exemption has been given in these cases.
In simple words, the wife will not receive any notice from the Income Tax Department for this amount. But, if the wife repeatedly invests this money somewhere and gets income from it, then she will have to pay tax on the income.
