Income Tax Rules: Limit to keep cash in the house and necessary rules, otherwise raids may occur

News India Live, Digital Desk: Income tax rules: Digital payments have increased after Kovid, but cash transactions are still quite popular. Many people take out the expenses of a month from the ATM at a time, so many women keep their savings at home instead of bank. In such a situation, the question arises that what is the limit to keep cash in the house and what is the rule of the Income Tax Department about this?

What is the limit to keep cash in the house?

Income tax department (Income Tax Department) Has not set any limit on keeping cash in the house. That is, no matter how much cash you can keep in the house. However, if there is a large amount of cash in your house and you are in the eyes of the Income Tax Department, then you have to clarify the source of that amount.

Documents of valid source required

If you keep a large amount of cash in your house, then you have to have documents of a valid source. The investigating agency or the Income Tax Department will have to prove that the money kept with you has been earned properly. You will not have any kind of trouble if you have proper documents.

Heavy fine on cash without account

If you are unable to give the right account of the cash kept in the house or do not give appropriate information about the source, then you may have to pay heavy fine. As per the rules applied after demonetisation, tax can be imposed up to 137 percent of that amount if undiscLosed cash is received.

Torrential and raid on tax evasion

If the Income Tax Department, Central Board of Direct Taxes (CBDT) or Enforcement Directorate (ED) suspect that you have earned the cash deposited illegally or you have stolen tax, then these agencies can kill (Income Tax RAID) under Section 132 of the Income Tax Act. Cash recovered in such cases can also be confiscated.

Important rules related to cash transaction

• According to banking rules, PAN card is mandatory for more than 50 thousand rupees cash deposit or withdrawing.
• For cash purchase of more than Rs 2 lakh, it is mandatory to give a copy of both PAN card and Aadhaar card.

Therefore, if you keep a large amount of cash in the house, take special care of its validity and documents. With this, you will be able to avoid the problems caused in the investigation of the Income Tax Department.

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