Cash At Home: You can keep this much cash at home, know what is the limit of keeping cash!
Suppose a person has a lot of money, he earns a lot, but how much cash can he keep at home? Is there any limit on keeping cash at home?
Well, nowadays is the era of digital transactions. 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 how much cash the law allows a person to keep at home.
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 at all illegal but there is a condition.
All cash should be part of your legitimate earnings. If IT has been raided at your place, 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 that no matter how much cash you want to keep, it should not be black money, it should not be unaccounted for. From where did you get so much cash, what is the source, you should get a reasonable answer for this.
Some have this hobby and some have a compulsion. For example, cash coming to a businessman's house is not a big deal. He deposits the cash in banks after a day or two or as per his convenience, but by then again a lot of cash is ready.
In such a situation, the question arises if a huge amount of cash has been found from your house in the IT raid and you are not able to tell any proper source of it to the authorities.
What if no one can give a satisfactory answer? In such a situation, the Income Tax team will confiscate that unaccounted cash and you can be fined up to 137 percent.
Know these important rules related to cash transactions
People believe that too much cash means black money. But it is not necessary that a lot of cash is always black money. Yes,
It is certain that the black business of black money is mostly done in cash. There are many rules regarding cash transactions to curb black money. Let's take a look at such rules.
- If unaccounted cash is found in the house, it can be fined up to 137 percent.
- A cash transaction of more than Rs 20 lakh cannot be made in a financial year i.e. from April to March, in which case a penalty can be imposed.
- If a person deposits more than Rs 20 lakh in cash in a year, then he will have to give information about his PAN card and Aadhaar card.
- Depositing more than 20 lakhs in a year and not providing PAN, and Aadhaar information can attract a fine of up to Rs 20 lakhs.
- Can't deposit or withdraw cash more than Rs 50,000 at a time without giving PAN number.
- You cannot make purchases worth more than Rs 2 lakh in cash.
- If you make purchases worth more than Rs 2 lakh in cash, you will have to provide a copy of your PAN and Aadhar card.
- You cannot take more than Rs 2 lakh cash in a day from any of your relatives. For this, a bank transaction is necessary.