Cash Limit at Home: What is the limit for keeping cash at home, when does the income tax raid occur?
This is the digital age and people have reduced the use of cash considerably. However, it did not end completely. Especially, many people keep their savings in cash (online payments). Housewives prefer to keep their savings at home rather than in the bank. Many other people do not trust banks much and keep their money to themselves. But is there any limit for keeping money at home (Cash Limit at Home)? Every day we see huge amounts of cash recovered from people's homes during raids. Does keeping cash beyond a limit result in a notice from the Income Tax Department?
The answer is, no. You can keep any amount of cash at home and there is no restriction on it. According to the rules of Income Tax raid, you can keep any amount of cash in your house. However, if a person comes under the scanner of the Income Tax Department, then he will have to tell what is the source of this money (cash at home income source)? If the person under investigation has a legitimate source of that money, then his documents will have to be shown. If everything is fine then there is no need to worry.
Difficulties will increase if correct information is not given
If you do not account for cash, your problems may increase. If your house is raided by the Income Tax Department (income tax raid process) and a large amount of cash is recovered. Apart from this, if you are not able to give correct information about that cash, then you may have to pay a heavy fine. Tax on cash can be imposed up to 137% of the amount of cash recovered from you. This means that 37% of the cash you have will go away and you will have to pay it.
Keep these things related to cash in mind
Let us tell you that you will have to show a PAN card for withdrawals or deposits of more than Rs 50,000 at a time in the bank. While making purchases (income tax rules), payment of more than Rs 2 lakh cannot be made in this case. For this also you will have to show your PAN and Aadhaar. Even if you deposit more than Rs 20 lakh in cash in your bank account (bank account cash limit) in a year, you will still have to show PAN and Aadhaar in the bank.
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