Income Tax Rule 2025 : How much cash can you keep at home, know the income tax rules..

Cash Limit At Home: Many times, we get to hear such news that the Income Tax Department raided a person's house or office and recovered a large amount of cash and valuables there. In such cases, sometimes cash is confiscated, and sometimes the person is also arrested. Due to this, people have this question in their mind: Is keeping too much cash at home a legal offense? And how much cash can be kept at home?

According to tax and legal experts, the Income Tax Department has not set any limit for keeping cash at home. You can keep any amount, but it is important that it is from a legal source and is declared in your Income Tax Return (ITR).

It is important to tell the source of cash-

Sections 68 to 69B of the Income Tax Act have provisions for income without source. If you are unable to identify the source of any cash, it will be considered as income without source. The Income Tax Department can impose heavy tax and penalties on such income. Therefore, it is important to keep a clear statement of all your sources of income. These provisions have been made to curb black money.

Information should be in tax returns and records-

The law does not say anything directly about the maximum limit of keeping cash. But if someone has more cash than required and its source is not clear, then suspicion is bound to arise. In case of any investigation, you will have to prove the source of every rupee that it is valid and you have recorded it in your tax return and accounts.

Up to 78% tax and penalty-

If you fail to do so, that is, you are unable to tell the correct source of cash, then that amount will be considered undisclosed income and about 78 percent tax and penalty can be imposed on it.

Advice to taxpayers and common people-

If you are a businessman, then your cashbook must match your accounts. This ensures that accurate records of all your transactions are kept. Even if you are not a trader, it is important to be able to explain the source of the cash you hold. As long as the money is honestly earned and fully accounted for, there is nothing to fear about holding cash. It helps maintain financial transparency and accountability.