Income tax: Cash deposit restrict in mutual funds to keep away from I-T discover
The revenue tax division of India is extremely vigilant in opposition to excessive worth money transactions. They have developed such a singular system that even after we do not report about our money transaction, they might fish out the transaction particulars from the steadiness sheet of the establishment with which we’ve got achieved the money transaction. For instance, suppose we made financial institution demand draft utilizing money and deposited that in our mutual fund scheme, then the revenue tax officers will get this data by mutual fund home steadiness sheet. So, it is advisable to know one’s money transaction restrict allowed whereas investing in mutual funds or some other funding scheme.
Speaking on the money transaction restrict that do not appeal to revenue tax discover Mumbai-based tax and funding knowledgeable Balwant Jain stated, “If an investor deposits cash to the tune of ₹10 lakh or above in mutual funds in a particular financial year, then income tax department may send notice to the investor. So, it’s better to contain one’s cash transactions while investing in mutual funds.”
Standing in sync with Balwant Jain’s views; SEBI registered tax and funding knowledgeable Jitendra Solanki stated, “One should try not cross the ₹10 lakh limit in mutual funds and equity investment as going beyond this limit (both cash and digital payment) attracts attention of income tax officials. However, if the income tax return (ITR) of the investor allows investment up to this limit then investing beyond ₹10 lakh in mutual funds and equity is advisable through digital payments.” He suggested fairness and mutual fund traders to keep away from money transaction past ₹10 lakh in single monetary 12 months.
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