Cash Rules: Most families in India still rely on the traditional way of keeping money at home. He still keeps large sums of money at home instead of keeping them in the bank. So that it can be useful when needed. Do you know how much cash you can keep at home so that income tax does not fall on you? You don’t have to answer to income tax authorities.
Cash in Home Rules: Most families in India still rely on the traditional way of keeping money at home. He still keeps large sums of money at home instead of keeping them in the bank. So that it can be useful when needed. Do you know how much cash you can keep at home so that income tax does not fall on you? You don’t have to answer to income tax authorities.
What do the income tax rules say?
According to the Income Tax Act, there is no restriction on the money kept at home. But in case of a raid by the Income Tax Department, the person will have to reveal the source of the cash. You should not have more cash than your income. If you are unable to account for the amount of cash kept at home in excess of your income, you may get into trouble. Income tax officials can impose penalty on you. In such a case, your money will be confiscated and the penalty can be up to 137% of the total money.
According to the Income Tax Department, you can keep only this much cash
1 No person is allowed to accept Rs 20,000 or more in cash for loan or deposit. This rule also applies to transfer of immovable property.
2. A fine can also be imposed on cash transactions of more than Rs 20 lakh in any financial year, if its source and account are not known.
3 According to the Central Board of Direct Taxation, it is necessary to show PAN number and details to deposit or withdraw more than Rs 50,000 at a time.
4 If an account holder deposits more than Rs 20 lakh in cash in a year, he will be liable to provide PAN and Aadhaar information.
5. Any Indian citizen can come under the scanner of the investigating agency if the sale or purchase of property is done through cash for more than Rs 30 lakh.
6. If a cardholder makes a payment of more than Rs 1 lakh at a time during payment through credit-debit card, then an investigation can be conducted against that person.
Cannot take cash amount of around Rs 2 lakh from 7 relatives in a day. This payment should be through bank.
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