Got an Income Tax Notice for Cash Deposit? Here's Exactly What to Reply
You deposited cash in your bank account. Maybe it was savings from years of hard work. Maybe it was sale proceeds from your shop. Maybe it was a family wedding gift. You thought nothing of it — until a notice from the Income Tax Department landed in your inbox. This is happening to thousands of people across Coimbatore and Tamil Nadu every year. The good news: if you know how to respond correctly, most cash deposit notices get resolved without any tax demand or penalty. Here is exactly what to do. Why Did You Get a Notice for Cash Deposit? The Income Tax Department receives data from banks, post offices, and registrars about high-value transactions. This is called Annual Information Statement (AIS) and Statement of Financial Transactions (SFT) . Banks are legally required to report: Cash deposits of ₹10 lakhs or more in a savings account in a financial year Cash deposits of ₹50 lakhs or more in a current account in a financial year Cash payments of ₹1 lakh or more for...