Maximum Cash Limit at home: Even if you earn lakhs of rupees every year, you should know the limit of keeping cash at home. Recently the income department has set a new limit for keeping cash at home, let us know…
Cash Limit at home: Suppose a person has a lot of wealth, earns a lot, but how much cash (Maximum Cash Limit at home) can he keep at home? Is there any limit for keeping cash at home?
By the way, nowadays it is the era of digital transactions (Rules related cash transactions in India). People do digital transactions indiscriminately. Still, there are many people who prefer to use cash only. In such a situation, it is important to know that how much cash the law allows a person to keep at home.
In this episode of ‘Haq Ki Baat’ series, we talk about cash, how much cash one can keep at home. Important rules related to transactions in cash.
You can keep as much cash at home as you want, but…
The Income Tax Act does not impose any limit on keeping cash at home. You can keep as much cash at home as you want. Keeping cash at home is not illegal at all but there is a condition.
All cash should be part of your legitimate earnings. It should not be excessive. If your place is raided by IT, then you can tell the source of that cash. If you are not able to do this, then action is decided against you.
It means to say that no matter how much cash you want to keep, it should not be black money, it should not be unaccounted. From where did you get so much cash, what is the source, there should be a reasonable answer to this.
If unaccounted cash is found in Agar…
Many people keep a lot of cash at home. Some have this hobby and some have compulsion. Like getting cash at a businessman’s house is not a big deal. He deposits the cash in banks after one or two days or according to his convenience, but by then again a lot of cash is ready.
In such a situation, the question arises that if a lot of cash has been found in your house in IT raid and you are not able to tell the authorities any reasonable source of it,
What if no one is able to give a satisfactory answer? In such a situation, the Income Tax team will confiscate that unaccounted cash and you may be fined up to 137 percent.
Know these important rules related to cash transactions
People assume that a lot of cash means black money. But a lot of cash need not always be black money. Yes,
It is certain that the black business of black money is mostly done in cash only. There are many rules regarding cash transactions to curb black money. Let us have a look at such rules.
- If unaccounted cash is found in the house, then a fine of up to 137 percent can be imposed on it.
- In a financial year i.e. from April to March, cash transactions of more than Rs 20 lakh cannot be done, in such a situation a fine can be imposed.
- If a person deposits cash of more than Rs 20 lakh in a year, then he will have to give information about PAN card and Aadhaar card.
- Depositing more than 20 lakhs in a year and not giving information about PAN, Aadhaar, can be fined up to 20 lakh rupees
- Can’t deposit or withdraw more than Rs 50,000 cash at a time without giving PAN number
- You cannot make purchases above Rs 2 lakh in cash
- If you make a purchase of more than Rs 2 lakh in cash, then you will have to give a copy of PAN and Aadhaar card.
- You cannot take more than Rs 2 lakh cash from any of your relatives in a day. For this, transaction through bank is necessary.
