Income Tax Rules : To curb black money, the government has made many rules regarding cash transactions. But is there any limit for keeping cash at home? After all, how much cash can a person keep in his house? In this issue of Haq Ki Baat, we will talk about cash and the rules related to transactions in it. Let us know about it in detail.
Income Tax Rules : Suppose a person has a lot of wealth and earns a lot, but how much cash can he keep at home (Maximum Cash Limit at home)? Is there any limit for keeping cash at home? Well, nowadays it is the era of digital transactions (Rules related cash transactions in India). People conduct digital transactions indiscriminately. Still, there are many people who prefer to use cash. In such a situation, it is important to know how much cash the law allows a person to keep at home. In this issue of ‘Haq Ki Baat’ series, the talk is about cash, lastly how much cash can one keep at home. Important rules related to cash transactions.
You can keep as much cash as you want at home but…
Income tax law 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 at all illegal but there is a condition. All cash should be part of your legitimate earnings. This should not be unaccounted for. 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 certain against you. That is to say, no matter how much cash you keep, it should not be black money, it should not be unaccounted. You should have a reasonable answer to where did so much cash come from, what is the source.
If I get unaccounted cash…
Many people keep a lot of cash in their homes. For some it is a hobby and for others it is a compulsion. Like getting cash at a businessman’s house is not a big deal. He deposits the cash in the banks after a day or two or as per his convenience, but by then a lot of cash is ready again. In such a situation, the question arises that what will happen if a lot of cash is found in an IT raid at your house and you are unable to tell the authorities about its legitimate source or give any 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 is not always necessarily black money. Yes, it is true that black money trading is mostly done in cash only. There are many rules regarding cash transactions to control black money. Let us take a look at such rules.
- If unaccounted cash is found in the house, a fine of up to 137 percent can be imposed.
- You cannot transact more than Rs 20 lakh in cash in a financial year i.e. from April to March, in such a situation a fine can be imposed.
- If a person deposits more than Rs 20 lakh in cash in a year, then he will have to provide details of PAN card and Aadhar card.
- Depositing more than Rs 20 lakh in a year and not providing PAN, Aadhaar information can result in a fine of up to Rs 20 lakh.
- Without giving PAN number, one cannot deposit or withdraw cash more than Rs 50 thousand at a time.
- You cannot make purchases worth more than Rs 2 lakh in cash
- If you make a purchase of more than Rs 2 lakh in cash, you will have to provide a copy of PAN and Aadhar card.
- You cannot take more than Rs 2 lakh in cash from any of your relatives in a day. For this, transaction through bank is necessary.
