If you do not tell the source of the cash found in your house or your answer is unsatisfactory, then you can be fined up to 137 percent.
New Delhi. One of the questions running in the mind of common people is whether there is any limit for keeping cash at home. Let us tell you that there is no limit to this. You can keep as much cash at home as you want. However, it is not that no action can be taken against you. The Income Tax Department can still raid your house. Keep cash at home as much as you want, but when you are asked about it, you must have a source of money. This means that where did the cash in your house come from, has it been disclosed.
Along with this, if it comes under the ambit of cash tax, then has tax been paid on it. These are some of the questions that you will have to face. If you have strong evidence regarding the source and you have also deposited tax on it, then there is no need to panic.
Mountain tax if found wrong
If the Income Tax Department is not satisfied with your answer and the source document given by you is found to be wrong or it is proved that you have violated the rules, then you may have to pay huge damages. You can be taxed up to 137 per cent of the total amount received at home.
Rule of depositing money in the bank
If you deposit more than Rs 20 lakh cash in the bank in a year, then you will have to show PAN card and Aadhaar card. If you fail to do so, you can be fined. On the other hand, if you withdraw more than Rs 1 crore cash from the bank in 1 year, then you will have to pay 2% TDS. Even if you withdraw Rs 50,000 or more cash from the bank in a day, you will have to show the PAN card.
Cash transaction
If you buy a property worth more than Rs 30 lakh in cash, then there can be an investigation on it. You cannot make any purchase above Rs 2 lakh with cash only. After doing this, you will have to show Aadhaar card and PAN card. Debit card can be checked on daily transactions above Rs 1 lakh. If you have to take more than 2 lakh rupees in a day from a relative, then also you will have to do this work through the bank. If you also want to make a donation, then you cannot donate more than Rs 2,000 through cash.
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