Invest > 10L year

General
1

Hi all, i have been hearing it we invest greater than 10 laks a year in stocks / MF we may get notice from IT department. How true is this? Do we get such notices even if we invest from our savings account electronically ?

Thanks.

2

This is pure unadulterated nonsense :slight_smile:

3

Good to know , thanks! I was wondering the same. I guess it is more related to cash transaction but i could not find anything concrete!

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4

Not sure how you got this 10lakhs value.
It works this way. Let’s say you declare income of 4.9L( very common because you don’t have to pay tax), and then you invest 10lakhs in shares, isn’t it obvious that you have under declared your income? So you may receive a SCN.

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5

This article I was referring to.

6

Thanks i fall in 30%+ category and declare everything and pay the taxes in full.

7

In that case, even if you receive a notice why are you worried? Just reply. :love_you_gesture:

8

Agreed, just wanted to understand the logic behind this article. For cash transaction is understood but why digital payment was not clear so wanted to clarify on forum.

9

I will take a guess. They are talking about someone who is depositing cash in bank account and then using that for investment in mutual funds. Again am not sure.
It’s not from an official website of income tax so no idea how they come up with such conclusions to write such articles.

1 Like
10

Good point, thanks