Income Tax Notice 2025: Do You Have Rs 10 Lakh in Your Bank Account? Income Tax Department May Send a Notice – Know the Reason and Easy Ways to Avoid It
The Income Tax Department of India has become more vigilant in recent years, especially with the help of advanced digital tracking systems. If you have large transactions or high balances in your bank account, you may attract the attention of the department. For 2025, one of the most discussed issues is related to individuals holding Rs 10 lakh or more in their bank accounts. Many taxpayers are worried: Will the Income Tax Department send a notice if I have Rs 10 lakh in my account? Let’s understand this in detail.
Why Rs 10 Lakh in Bank Account Can Attract an Income Tax Notice?
The Central Board of Direct Taxes (CBDT) keeps a close watch on financial transactions under its Annual Information Return (AIR) system. Banks and other financial institutions are required to report certain transactions to the department.
Here’s why having Rs 10 lakh or more can invite scrutiny:
1. Cash Deposits Over Rs 10 Lakh in a Financial Year
If you deposit cash exceeding Rs 10 lakh in your savings account in a financial year, the bank reports it to the Income Tax Department.
For current accounts, the limit is even lower — Rs 50 lakh.
2. Fixed Deposits Above Rs 10 Lakh
If you invest more than Rs 10 lakh in fixed deposits (FDs), the information is also shared with the IT department.
3. High-Value Transactions
Spending large amounts on credit cards, property, or mutual funds (usually above Rs 2 lakh to Rs 10 lakh) also comes under the IT department’s scanner.
4. Mismatch in Income and Transactions
If your income declared in the ITR does not match the money lying in your bank account, you may get a notice.
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What Kind of Notice Can You Receive?
If the department finds discrepancies, it may issue:
Section 133(6) Notice – Asking for details about your income, bank transactions, or investments.
Section 143(1) Notice – Intimating mismatches in your filed ITR.
Section 148 Notice – If income is suspected to have escaped assessment.
How to Avoid Getting an Income Tax Notice?
You don’t need to panic if you have Rs 10 lakh or more in your account, provided everything is legal and well-documented. Here are simple steps to avoid notices:
1. File Income Tax Returns (ITR) on Time
Always file your ITR before the deadline, even if your income is below the taxable limit, but you have large transactions.
2. Report All Income Sources
Include salary, business income, rental income, capital gains, and even interest earned on savings and fixed deposits.
3. Maintain Proper Documentation
Keep bank statements, salary slips, rent agreements, property purchase papers, and investment proofs safely.
If questioned, you should be able to explain the source of money.
4. Avoid Large Cash Transactions
Use digital payments, banking channels, or cheques for high-value transactions.
Depositing large amounts of cash without proof may trigger suspicion.
5. Link PAN with All Transactions
Ensure your PAN is quoted for investments, property deals, and large deposits.
This helps in matching your transactions with your tax filings.
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Key Takeaways
Having Rs 10 lakh in your bank account does not automatically mean you will get a notice.
The Income Tax Department only sends notices if there is a mismatch, unexplained cash deposits, or non-reporting of income.
Filing accurate ITR, maintaining records, and ensuring all transactions are legal is the easiest way to stay safe.
Pro Tip: If you receive a notice, don’t ignore it. Respond promptly with valid explanations and proofs. If needed, consult a tax expert or Chartered Accountant.
