Cash deposits below ₹10 lakh may still attract tax notices

Many people in India think that if they deposit less than ₹10 lakh in cash in a year, the tax department won't notice.

But that's not true.

The ₹10 lakh rule is just for banks to report big deposits.

The tax department can still check any deposit if they think it's suspicious.

They get information from many places, like banks and other financial institutions.

If the tax department asks about a deposit, you should be ready to show where the money came from with documents like bank statements or sale deeds.

If you can't explain the money, the tax department might tax it at a higher rate.