TaxWiser
KF Mentor
Wondering how the tax department decides to send you a notice? Here’s a breakdown of the key transactions, especially focusing on cash and online dealings. Better safe than sorry, right? 
Let’s go:
Big Fat Purchases (Cash or Online): If you spend ₹10 lakh or more to buy a car—whether in cash or by swiping your card—expect the tax department to take notice. They’ll want to know if your declared income matches your spending habits! 
Lavish Vacations (International Spends): Spending ₹2 lakh or more on foreign trips using cash or your credit/debit card can raise eyebrows. They might be curious if your income statements justify your jet-setting lifestyle. 
Home Sweet Home: If you invest ₹30 lakh or above in property, whether you pay in cash or transfer funds online, make sure the sources of your money are well-documented. Property transactions, especially when there’s cash involved, are under sharp scrutiny. 
Bank Drama (Cash Matters): Depositing ₹10 lakh or more in your savings account is a big red flag. Cash deposits in particular are carefully monitored, so keep all the records handy to prove your sources of income. 
Credit Card Mania (Online Spends): Spending ₹1 lakh or more in a single transaction, or ₹10 lakh+ annually on your credit card, makes the department sit up. They’ll investigate to see if your spending aligns with your declared income. This applies even if you’re splurging on online shopping sprees! 
Business Buzz (Current Account Cash Flow): For businesses, depositing ₹50 lakh or more into your current account—especially cash deposits—can set off alarms. Always ensure your books are transparent and updated. 
Stock Market Whiz: Making significant transactions, whether buying or selling shares or mutual funds online, can also attract notices. The tax department monitors high-value investments and will check if your gains are correctly reported. 
Pro Tips:
(Source: TaxConcept, Summarized Using Samsung Note Assist)
Let’s go:
Big Fat Purchases (Cash or Online): If you spend ₹10 lakh or more to buy a car—whether in cash or by swiping your card—expect the tax department to take notice. They’ll want to know if your declared income matches your spending habits! Lavish Vacations (International Spends): Spending ₹2 lakh or more on foreign trips using cash or your credit/debit card can raise eyebrows. They might be curious if your income statements justify your jet-setting lifestyle. Home Sweet Home: If you invest ₹30 lakh or above in property, whether you pay in cash or transfer funds online, make sure the sources of your money are well-documented. Property transactions, especially when there’s cash involved, are under sharp scrutiny. Bank Drama (Cash Matters): Depositing ₹10 lakh or more in your savings account is a big red flag. Cash deposits in particular are carefully monitored, so keep all the records handy to prove your sources of income. Credit Card Mania (Online Spends): Spending ₹1 lakh or more in a single transaction, or ₹10 lakh+ annually on your credit card, makes the department sit up. They’ll investigate to see if your spending aligns with your declared income. This applies even if you’re splurging on online shopping sprees! Business Buzz (Current Account Cash Flow): For businesses, depositing ₹50 lakh or more into your current account—especially cash deposits—can set off alarms. Always ensure your books are transparent and updated. Stock Market Whiz: Making significant transactions, whether buying or selling shares or mutual funds online, can also attract notices. The tax department monitors high-value investments and will check if your gains are correctly reported. Pro Tips:- Always declare your income honestly and file your returns on time.
- Keep records of all big transactions, whether cash, bank transfers, or card payments.
- If you're spending beyond your declared income (like sudden big-ticket cash deposits), have a valid explanation ready to avoid penalties.
(Source: TaxConcept, Summarized Using Samsung Note Assist)
