Cash Limit at Home: What is the limit for keeping cash at home, when does income tax raid take place..
It is the age of digital and people have reduced the use of cash to a great extent. However, it is not completely over. Especially, many people keep their savings in cash (online payments). Housewives prefer to keep their savings at home instead of the bank. Many other people also do not trust banks much and keep their money to themselves. But is there any limit to keeping money at home (Cash Limit at Home)? We see huge amounts of cash recovered from people's homes during raids every day. Does the Income Tax Department send a notice for keeping cash beyond a limit?
The answer is no. You can keep any amount of cash at home and there is no restriction on it. According to the Income Tax (Income Tax raid) rules, you can keep any amount of cash in your house. However, if a person comes under the scrutiny 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 scrutiny has a legitimate source of that money, then its documents will have to be shown. If everything is fine then there is no need to panic.
Problems will increase if correct information is not given
If you do not give the account of cash, then your problems can increase. If the income tax department raids your house (income tax raid process) and a large amount of cash is recovered. Along with this, if you are also not able to give correct information about that cash, then you may have to pay a heavy fine. Up to 137% tax can be levied on the amount of cash recovered from you (tax on cash). This means that not only the cash you have, you will have to pay 37 percent more on top of that.
Also, keep these things related to cash in mind
Let us tell you that you will have to show your PAN card for withdrawing or depositing more than Rs 50,000 at a time in the bank. You cannot make a payment of more than 2 lakhs while making a purchase (income tax rules). For this also you will have to show your PAN and Aadhaar. Even if you deposit more than Rs 20 lakh cash in your bank account (bank account cash limit) in a year, you will still have to show PAN and Aadhaar to the bank.
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