Cash limit at Home: New update! There is no limit to keep cash at home, Know the income tax rules for keeping cash at home
There is no limit to keep cash at home, but for this it is necessary that you have a complete account of whatever cash is available with you.
Digital transactions are continuously increasing in the country. In such a situation, people have reduced keeping cash at home as well. But when the emergency comes, then people suddenly need cash. Because at the time of emergency, people depend on cash the most. That’s why people prefer to keep cash at home to deal with emergency situations. But do you know how much cash you can keep at home? What is the limit for keeping cash at home? What will happen if you keep more money at home than the limit. Here you are being given complete information about it.
According to the rules of the government, there is no limit to keep cash in the house, but for this it is necessary that you have a complete account of whatever cash is available with you. From where did that money come to you and what is its source of income.
Tax related documents required
If you have a large amount available in cash, then you have to pay tax on it. Along with this, you must have all the documents related to tax payment, so that you can easily answer the questions related to their cash to the Income Tax Department.
If the Income Tax Department raids your house and a large amount of cash is recovered and you are not able to give correct information about that cash, then you may have to pay a heavy fine. This fine can be up to 137 percent of the amount seized in the raid.
These are the rules of keeping cash at home
- Penalty can be imposed on cash transactions of more than Rs 20 lakh in a financial year.
- According to CBDT, it is necessary to give PAN number for depositing or withdrawing more than Rs 50,000 at a time.
- If a person deposits Rs 20 lakh in cash in a year, then he will have to give information about both PAN and Aadhaar.
- Failure to provide PAN and Aadhaar details can attract a fine of up to Rs 20 lakh.
- If you cannot buy any goods with cash of more than 2 lakh rupees.
- A copy of PAN and Aadhaar card may be required for purchases in cash above Rs 2 lakh.
- Any person can come on the radar of the investigating agency regarding the purchase and sale of cash assets of more than Rs 30 lakh.
- Cash of more than two lakh rupees cannot be taken from relatives in a day.