10 Bank Moves That Can Trigger Your Tax Notice
You don't need to be wealthy to get an income tax notice. Certain everyday bank transactions — like large cash deposits, frequent UPI transfers, or big FD investments — are automatically flagged to the Income Tax Department. Here's what to watch out for.
Depositing ₹10L cash in your account = same IT radar as buying a luxury watch
Cash deposits above this in a year can trigger an income tax notice to you
Key Takeaways
Check your Annual Information Statement (AIS) on the Income Tax portal at incometax.gov.in — it shows every transaction banks have reported against your PAN.
Avoid depositing large amounts of cash in one go without a clear, documented source — salary slips, sale receipts, or gift declarations can protect you.
If you receive a tax notice about a flagged transaction, respond within the deadline (usually 15–30 days) with proof of the money's source — ignoring it leads to penalties.
You don't need to be wealthy to get an income tax notice. Certain everyday bank transactions — like large cash deposits, frequent UPI transfers, or big FD investments — are automatically flagged to the Income Tax Department. Here's what to watch out for.
Here's what happened: Banks, post offices, and mutual funds report high-value transactions directly to the Income Tax Department via an Annual Information Statement (AIS).. Cash deposits of ₹10 lakh or more in savings accounts in a financial year are automatically flagged — even if split across multiple deposits.. Large credit card payments (over ₹1 lakh in cash or ₹10 lakh total annually), big FD investments, and property purchases above ₹30 lakh are also reported..
What you should do: Check your Annual Information Statement (AIS) on the Income Tax portal at incometax.gov.in — it shows every transaction banks have reported against your PAN.. Avoid depositing large amounts of cash in one go without a clear, documented source — salary slips, sale receipts, or gift declarations can protect you.. If you receive a tax notice about a flagged transaction, respond within the deadline (usually 15–30 days) with proof of the money's source — ignoring it leads to penalties..
Even zero-tax-bracket earners can get IT notices — it's about unexplained transactions, not just taxable income. A clear paper trail is your best shield.
Explore TARA — Your Financial Co-Pilot
Retirement, tax, EMI, refinance and savings calculators — all free. Get a plan aligned to YOUR income, goals and CIBIL.
Try TARA — Free →References
- [1]“10 bank transactions that can draw income tax attention even If you're not rich” Wealth-Economic Times · 15 Jul 2026
This article is reported by GoCredit's Editorial Team based on the source above. GoCredit synthesises, contextualises, and adds India-borrower-relevant analysis. We are not the original publisher.