Hey All.
India budget 2024 was presented recently i.e. on 1 February by our Finance Minister Nirmala Sitharaman and the Budget Highlights in a nutshell is as follows:: No change in tax rates, better trains, higher spending and lower fiscal deficit. Salaried employees always look for the tax rates and it was a bit of disappointment as no changes were reflected in the income tax exemption limit from ₹2.5 lakh to ₹5 lakh. Here is the information around the Income Tax Slabs 2024-2025 For New Income Tax Regime::
| INCOME RANGE INR. | RATES |
|---|---|
| Up to 300,000 | NIL |
| 300,001 to 600,000 | 5% |
| 600,001 to 900,000 | 10% |
| 900,001 to 1200,000 | 15% |
| 1200,001 to 1500,000 | 20% |
| Above 1500,000 | 30% |
We have only 5 income ranges, and the maximum tax rate is set at 30%, which can be quite burdensome. Unfortunately, in this budget for 2024/2025, there is no relief in the tax rate slabs, which is disappointing. Nevertheless, we'll have to navigate through it and manage our tax obligations accordingly. That was all about the budget news lets now look at the recent news that is floating around the cash transaction alert and which are those transactions that can come under the radar of the income tax department. Certain cash transactions may attract scrutiny from the income tax department, potentially leading to complications. Noticeably large transactions could prompt the department to request an explanation, necessitating the disclosure of specific details related to those transactions. All this is being done to curb tax evasion and combat money laundering, tax authorities meticulously oversee a range of transactions involving cash. Here the those 5 transactions that we need to take extra care that could potentially lead to complications.
1. Bank Fixed Deposit (FD)::
The Central Board of Direct Taxes (CBDT) has mandated that cash deposits in bank Fixed Deposits (FDs) must not surpass Rs 10 lakh - $12K+ approx.. Banks are now required to disclose if an individual has deposits exceeding this specified limit across one or more fixed deposits schemes.
2. Bank savings account deposit::
The threshold for cash deposits in a bank account is set at ₹10 lakh - $12K+ approx. Should a savings account holder exceed this limit in a financial year, the Income Tax Department may issue an Income Tax notice.
3.Credit card bill payment::
We have guidelines for the credit card bill payments as well and according to CBDT regulations, any cash payments exceeding Rs 1 lakh towards settling credit card bills must be reported to the Income Tax Department. Moreover, disclosures to the tax department are required for payments of ₹10 lakh or more made during a financial year for the settlement of credit card bills.
4.Sale or purchase of real estate::
Planning to sell or buy a property you need to be more vigilant now if you are doing any cash transactions. The tax authorities must be informed by the property registrar about any investment or sale of immovable property valued at ₹30 lakh or more. Consequently, individuals engaging in the buying or selling of real estate are recommended to declare their cash transactions in Form 26AS, as the Property Registrar will undoubtedly provide corresponding reports to the authorities.
5.Investment in Shares, Mutual Funds, Debentures and Bonds::
Ok we have now have more stringent tracking for investment in shares, mutual funds, debentures and bonds. Companies or institutions issuing bonds or debentures are required to mandatorily report to IT department for any funds received, amounting to ₹10 lakh or more from an individual, for the acquisition of bonds or debentures during a financial year.
As we understand these regulations, it is essential to stay informed and manage our financial transactions judiciously. The aim is to align with the government's efforts to curb tax evasion and combat money laundering, ensuring a transparent and compliant financial landscape.
Cash Transaction Alert: Income Tax Notices for 5 Transactions Under New Rules!
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Have Your Say on Cash Transaction Alert: Income Tax Notices..
Did you hear this news around the Cash Transaction Alert: Income Tax Notices. Keep an eye on the high-value cash transactions that can get you flagged by I-T dept. Let me know your views in the comment section below..cheers
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