Cash Limit At Home: Still many people prefer to transact in cash. For this, people withdraw more cash from the bank or ATM in one go. But do you know the maximum amount of cash that can be kept at home? What are the income tax rules regarding cash?
New Delhi: The trend of digital transactions has increased significantly since the Corona period. Now people are doing most of the transactions through UPI and debit-credit cards only. But still people prefer to transact in cash. For this, people withdraw more cash from the ATM at one go, but do you know that the maximum amount of cash (Cash Limit at Home) can be kept at home. You may have to pay a fine for not knowing the rules. What is the income tax rule for keeping cash at home? Let us tell you.
How much cash can be kept at home
According to the Income Tax rules, you can keep as much cash at home as you want. But if the cash kept in your house is ever caught by the investigating agency, then you will have to tell the source of this cash. If you have not earned money wrongly then you do not need to panic. You must have complete documents for this. There is no need to worry if you have filed your tax return.
May be fined
If you are not able to tell the source of the cash kept in the house, then the investigating agency will take action against you. Your difficulties may increase. Let us tell you that after demonetization, the Income Tax Department said that if you get undisclosed cash, then tax can be imposed up to 137 percent of the amount of cash recovered from you.
How much cash can be withdrawn in a year
According to the Central Board of Direct Taxes, if someone withdraws more than Rs 50 thousand in cash at a time, he will have to show his PAN card. More than Rs 20 lakh cash can be deposited or withdrawn in a year. If you make cash payment of more than Rs 2 lakh, you will have to show PAN and Aadhar card.
