Cash Limit: More cash kept at home will be confiscated by income tax, know the limit..

You must have often read the news that Income Tax Department officials raided someone's house and recovered crores of rupees. When such raids are conducted, black money worth crores of rupees is recovered, which includes gold, silver, and cash. The items found during such raids are seized. In such a situation, the question often arises in the mind of how much cash should be kept at home so that it does not become illegal. So let us tell you today.

How much cash can be kept at home?
Tax experts say that there is no rule regarding keeping cash in the Income Tax Act. Any person can keep as much cash as he wants in his house. However, it is important that this money is earned properly and is not black money. At the same time, cash kept at home is also required to be declared in the ITR and accounts book.

When does a person come on the income tax radar?
As we told you you can keep any amount of cash at home, but it is important to know what is the source of that money. If a person has a large amount of cash, then the Income Tax authorities start investigating the source of that money, for which it is necessary for the person to have an explanation regarding the cash. At the same time, it is important to properly record the information about unaccounted property in accounts and financial records.

If this is not the case then under the provisions the assessing officer has the right to seek clarification from the taxpayer. If that amount is not explained then they are disqualified. In such a situation, along with a 78 percent tax on that income, the penalty is also imposed.

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