Income Tax Department will send notice if you exceed the limit of transaction through Paytm PhonePe and Google Pay

Cash transaction rule Today we mostly use UPI apps like Paytm Phone Pay and Google Pay for transactions. However, a limit has been set by the Income Tax Department on this transaction as well. If a person transacts more than the limit, he may have to face investigation by the Income Tax Department.

Cash transaction rule: In this digital world, UPI (Unified Payments Interface) has made transactions easier. With the advent of UPI service, the fear of theft of money or cash has also ended. However, new technology has its own advantages and disadvantages.

The more things are becoming modern, the risk of theft and fraud has increased. Therefore, the government has set different rules regarding the use of these technologies. Similarly, to prevent fraud and corruption, some rules have been set by the Income Tax Department regarding transactions and payments.

How much can be transacted?

According to Section 269ST of Income Tax, any person can transact up to Rs 2 lakh in a day. If the transaction amount exceeds the stated limit, then you may be at risk of the Income Tax Department.

In these situations, transactions of more than 2 lakh are not okay

  • No person can make a transaction of more than Rs 2 lakh to any institution or other person.
  • There is a ban on cash transactions of more than Rs 2 lakh in lump sum or separate transactions.
  • Along with this, some rules have been fixed in income tax regarding transactions and payments. Like
  • Rules have been fixed regarding cash payment under section 40A (3) and 43.
  • Along with this, rules have been made regarding cash transactions under section 269SS, 269ST.

How to avoid income tax notice?

If you want to avoid income tax notice, then it is important to maintain transparency regarding every transaction. Try to have a bill or proof of every transaction, whether it is cash or UPI. Especially for such transactions which are done on buying and selling of large goods or items, it is important to take the bill. So that you do not face any kind of problem in future.

The post Income Tax Department will send notice if you exceed the limit of transaction through Paytm PhonePe and Google Pay first appeared on informalnewz.

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