Income taxes are payable by all. However, a lot of individuals have good questions. Can an income tax notice be issued for paying tax on this as well if there is a financial transaction between the father and son?
Cash Transaction Guidelines: This information will be helpful to you if you also exchange money between a husband and wife or a father and son. Actually, we consider revenue in every transaction we do.
Many people wonder in such circumstances if they might obtain an income tax notification even for cash transactions. Tell us how much cash your family is able to transact.
Does income tax send out notices?
Experts in taxes state that if you give your wife money each month for household needs or as a gift, she won’t be responsible for income taxes. The husband’s income will be deemed to include both of these types of amounts.
The Income Tax Department will not send the wife a notice regarding this sum. However, tax will be due on the income if the wife keeps investing this money and receives income from it.
Stated differently, the income from investments that is determined annually will be regarded as the wife’s income and will be subject to taxation.
Cash transactions above Rs 20,000 may be subject to penalties under Income Tax Sections 269SS and 269T. Nonetheless, there are frequent exceptions to this.
In these situations, there is an exception
Transactions between husband and wife, father and son, and some close relatives, for instance, are not penalised. In these circumstances, an exemption has been granted. Put simply, the income tax department will not send the wife a notification for this sum.
However, the wife will have to pay taxes on the income if she keeps investing this money and makes money from it.