Cash Limit At Home: Still many people prefer to transact in cash. For this, people withdraw more cash from the bank or ATM at one go. But do you know what is the maximum amount of cash that can be kept in the house? What are the income tax rules regarding cash?
Even though e-transactions have increased, cash has also increased.
The trend of digital transactions has increased significantly since the Corona period. Now people are doing most of the transactions through UPI and debit-credit cards. But people still prefer to transact in cash. For this, people withdraw more cash from the ATM at one go, but do you know the maximum amount of cash that can be kept at home (Cash Limit at Home). It is also mandatory to keep this information because if you have more cash than the limit, you may have to pay a fine.
How much cash can be kept at home?
According to the rules of the Income Tax Department, you can keep as much cash as you want at home. But if the cash kept in your house has to be sourced. If any investigating agency ever catches you, you will have to reveal the source of this cash. If you have not earned money wrongly then you do not need to panic. You must have complete documents for this. Even if you have filed tax return, there is no need to panic. This means that having plenty of cash at home is not a problem.
What will happen if you cannot tell the source?
If you are not able to tell the source of the cash kept in the house, then the investigating agency will take action against you. Your difficulties may increase. The investigating agency will give information to the Income Tax Department. The Income Tax Department will investigate and tell you how much return you have filed. If you are found with undisclosed cash during the investigation by the Income Tax Department, then tax and penalty can be imposed up to 137 percent of the amount of cash recovered from you.
How much cash can be withdrawn from the bank at one time?
According to the rules of the Income Tax Department, you can withdraw the entire amount deposited in your account in the form of cash, but there is a limit. But if you withdraw more than Rs 50 thousand in cash at a time, then you will have to show your PAN card. More than Rs 20 lakh cash can be deposited or withdrawn in a year. If you make cash payment of more than Rs 2 lakh, you will have to show PAN and Aadhar card.
