Cash Limit At Home: Still many people prefer to transact in cash. For this, people withdraw more cash from the bank or ATM at one go. But do you know what is the maximum amount of cash that can be kept in the house? What are the income tax rules regarding cash? Let us know about it in detail.
The trend of digital transactions has increased significantly since the pandemic. Now people are doing most of the transactions through UPI and debit-credit cards. But people still prefer to transact in cash. For this, people withdraw more cash from the ATM at one go, but do you know the maximum amount of cash that can be kept at home (Cash Limit at Home). You may have to pay a fine if you are not aware of the rules. What is the income tax rule for keeping cash at home? Let us tell you.
How much cash can you keep at home?
According to Income Tax rules, you can keep as much cash as you want at home. But if any investigating agency ever seizes the cash kept in your house, 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. If you have filed your tax return then there is no need to worry.
Fine may be imposed
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How much cash can be withdrawn in a year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 More than Rs 20 lakh cash can be deposited or withdrawn in a year.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.
