If you have so much cash lying in your house, then be careful because income tax officials can raid your house at any time, know these rules related to keeping cash at home
Cash Limit: The trend of digital transactions has increased in the country. People are using this facility in increasing numbers. But at the time of emergency, people rely only on cash. For this reason, they keep cash in their house only. Very few people know how much cash is right to keep at home. According to the rules, there is no limit for keeping cash at home. But it is necessary that whatever cash is available with you, you should have a complete account of it. Where did that cash come from and what is the source.
If you have a large amount of cash, then tax should be paid on it. With this, 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 the Income Tax Department raids your house and a large amount of cash is recovered and you are not able to give correct information about that cash, then you may have to pay a heavy fine. This fine can be up to 137 percent of the amount seized in the raid.
Rules that are linked to cash…
- Cash transactions exceeding Rs 20 lakh in a financial year may attract a fine.
- According to CBDT, it is necessary to give PAN number for depositing or withdrawing more than Rs 50,000 at a time.
- If a person deposits Rs 20 lakh in cash in a year, then he will have to give information about PAN and Aadhaar.
- Failure to provide PAN and Aadhaar details can lead to a fine of up to Rs 20 lakh.
- You cannot buy any goods with cash of more than Rs 2 lakh.
- For cash purchases above Rs 2 lakh, a copy of PAN and Aadhaar card will be required.
- Any person can come on the radar of the investigating agency regarding the purchase and sale of cash assets of more than Rs 30 lakh.
- If a person pays more than one lakh rupees at a time during the payment of credit-debit card, then investigation can be done.
- Cash amount of more than Rs 2 lakh cannot be taken from relatives in a day. This has to be done through the bank.