How much cash can a common man keep in his house? To understand this, some rules set by the CBDT have to be kept in mind. If your money is legitimate, then you can keep as much money as you want, but proof of this will have to be provided.
New Delhi. Big investigative agencies like Income Tax, ED, CBI have raided many places in the past, and recovered cash worth crores of rupees from people’s homes. In a major action in West Bengal, the Enforcement Directorate or ED seized Rs 50 crore in cash from Arpita Mukherjee’s flat. Similar action has been taken many times before this as well.
In such a situation, the question arises that how much cash can a common man keep in his house? With how much cash kept in your house are you safe and not afraid of any investigative agency? Today we are going to tell about this in detail.
According to the rules of the Income Tax Department, you can keep any amount of cash in your house, but if it is caught by the investigating agency, then you will have to tell its source. If you have earned that money legitimately and have complete documents for it or have filed income tax return, then there is no need to panic. But if you are unable to tell the source, then the agency will take its own action.
Some important points to know
- Failure to reveal the source of the money kept in the house can lead to a fine of up to 137 percent.
- Transactions exceeding Rs 20 lakh in cash in a financial year can attract a penalty.
- According to the CBDT, it is necessary to provide PAN number for depositing or withdrawing cash 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 details of PAN and Aadhaar.
- Failure to provide PAN and Aadhaar details can result in a fine of up to Rs 20 lakh.
- Purchases cannot be made in cash above Rs 2 lakh.
- For purchases above Rs 2 lakh in cash, copy of PAN and Aadhar card will have to be given.
- A person can come on the radar of the investigating agency for the purchase and sale of cash properties above Rs 30 lakh.
- During the payment of credit-debit card, if a person makes a payment of more than one lakh rupees in one go, then there can be an investigation.
- Cash of more than Rs 2 lakh cannot be taken from your relatives in a day. This has to be done through the bank.
- The limit for donating cash has been fixed at Rs 2,000.
- No person can take a loan of more than 20 thousand in cash from any other person.
- TDS will be levied on cash withdrawal of more than Rs 2 crore from the bank.
