Income Tax Rule: In India, there are many times such news that the Income Tax Department raided a person’s house or office and recovered a large amount of cash and valuables there. In such cases, sometimes cash is confiscated and sometimes the person is also arrested.
Cash Limit At Home: In India, there are many times such news that the Income Tax Department raided a person’s house or office and recovered a large amount of cash and valuables there. In such cases, sometimes cash is confiscated and sometimes the person is also arrested. This raises the question in people’s minds whether keeping more cash at home is a crime legally? And how much cash can be kept at home?
In this regard, tax and legal experts say that the Income Tax Department has not set any limit on how much cash can be kept at home. That is, you can keep any amount of cash at home, it is just necessary that the money is from a valid source. This should be mentioned in your Income Tax Return (ITR).
It is necessary to tell the source of cash
Sections 68 to 69B of the Income Tax Act have provisions for undisclosed income. If you are unable to tell the source of cash, it will be considered as undisclosed income and heavy tax and penalty can be imposed on it.
Information should be in tax returns and records
The law does not say anything directly about the maximum limit of keeping cash. But if someone has more cash than required and its source is not clear, then suspicion is bound to arise. In case of any investigation, you will have to prove the source of every rupee that it is valid and you have recorded it in your tax returns and accounts.
Tax and penalty up to 78%
If you fail to do so, that is, you are unable to tell the correct source of cash, then that amount will be considered as undisclosed income and about 78% tax and penalty can be imposed on it.
Advice to taxpayers and common people
If you are a trader, then your cashbook should match your accounts. And even if you are not a trader, it is important to disclose the source of cash. So there is nothing to fear in keeping cash, just make sure that the money is earned honestly and its complete account is available.
Most Read Articles:
- DA Hike: Good news! Salary of government employees of this state will increase, Government has increased DA by this much
- New Vande Bharat Train: Good news for passengers! New Vande Bharat train will run between these cities, journey will be completed in 5 hours, check routes and other details
- Credit Card Link UPI: Link your credit card to UPI from home, know step-by-step guide
