How Much Cash Can You Keep At Home?

Look at the limit of cash to be kept and home and other important rules by the income tax department.

In today’s era, digital transactions have largely increased in the country but still a large number of people rely only on cash at the time of emergency. A lot of people prefer to keep huge amounts of cash at their home. However, very few people know that it is right to keep cash at home only if it comes under the purview of the law. We are going to give all the information related to this. 

How much cash can be kept?

As per the rules, you can keep as much cash at home as you want. No limit has been set by the government regarding this, but the rule is that you should have full details about whatever cash is available with you. Where did it come from? What is its source? You must  have complete information about it.

Full payment of tax

If you have a large amount of cash, then full tax should have been paid. You should have all the documents related to tax payment, so that you can easily give any information related to cash when asked by the Income Tax Department. If you are not able to give the correct information about that cash, then you may have to pay a heavy fine. The fine can extend up to 137 percent of the amount seized in the raid.

Things to note - 

  1. Transaction of more than Rs 20 lakh in cash in a financial year can attract a fine.

  2. It is necessary to give the PAN number for depositing or withdrawing cash more than Rs 50,000 at a time.

  3. If a person deposits 20 lakh rupees in cash in 1 year, then he will have to give information about PAN (PAN) and Aadhaar (Aadhaar).

  4. Fine up to Rs 20 lakh may have to be paid for not  giving information about PAN and Aadhaar.

  5. You cannot shop for more than Rs 2 lakh in cash.

  6. A copy of PAN and Aadhaar card will have to be given if purchases of more than Rs 2 lakh are made in cash.

  7. The person can come on the radar of the investigating agency on the purchase and sale of property worth more than Rs 30 lakh in cash.

  8. At the time of payment of a Credit-Debit Card card, if a person pays an amount of more than Rs 1 lakh in one go, then investigation can be done.

  9. Can’t take cash more than Rs 2 lakh from your relatives in 1 day. This has to be done through the bank.

  10. The limit for donating in cash has been fixed at Rs 2,000.

  11. No person can take a loan of more than 20,000 in cash from another person.

  12. You will have to pay TDS, if you withdraw more than Rs 2 crore cash from the bank.

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