Tax Knowledge: It is very important for everyone, from a common citizen to a special person, to know how much cash you can keep in your house. Because the Income Tax Department has some rules for keeping cash at home
New Delhi. How much cash can be kept in the house, penalty is imposed for keeping it, many such questions must be coming in your mind often. In such a situation, do you know what is the limit of keeping cash at home (Cash Limit at Home). What is the maximum amount of cash that can be kept at home? If you are not aware of the rules, you may also have to pay a heavy fine. Let us know what is the income tax rule for keeping cash at home.
According to the rules of Income Tax, 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 legally and have complete documents for it or have filed income tax return, then there is no need to worry. But if you are not able to tell the source, then the agency will take its own action.
When does the Income Tax Department impose penalty?
If you do not give the account of cash then your difficulties may increase. If your house is raided by the Income Tax Department and a large amount of cash is recovered. Along with this, if you are not able to give correct information about that cash also, then you may have to pay a heavy fine. The amount of cash recovered from you can be taxed up to 137% of that amount. This means that the amount of cash kept with you will definitely go and you will have to pay 37% on top of that.
Keep these things in mind for big transactions
At the time of house-house, car or marriage, we often need to do big transactions. Before doing this type of transaction, it is necessary to take care of some things. Let us tell you that you will have to show PAN card for withdrawal or deposit of more than Rs 50,000 in the bank at one go. At the time of purchase, payment of more than 2 lakhs cannot be made in the case. For this also you have to show PAN and Aadhaar.
Apart from this, if you make a cash deposit of more than Rs 20 lakh in your bank account in a year, even then you will have to show PAN and Aadhaar in the bank. If you withdraw cash more than Rs 2 crore from the bank, then you will have to give TDS certificate. On the other hand, on cash purchase and sale of property worth more than Rs 30 lakh, that person can come on the radar of the investigating agency.
