Cash Limit: The Income Tax Department has also made rules about keeping cash at home, if you do not know about it, then let us know how much cash you can keep at home and how much penalty can be imposed on you if you find more cash than the limit at your home. Let us know the complete information about this and the Income Tax rules… No matter how much digital and online payments increase, the greed for cash does not end.
After demonetization, the use of cash has increased even more. Everyone must be keeping some amount in cash in their homes, but do you know what is the limit of keeping cash at home or Cash Limit at Home.
If the Income Tax Department goes out to investigate about this and finds more cash with you, then it can also impose a hefty fine. After all, what is the Income Tax rule for keeping cash at home.
Although, there is no limit on keeping cash at home. As per the Income Tax rules, you can keep any amount of cash in your house, but if the investigating agency catches it, then you will have to tell its source. If you have earned that money legally and have complete documents for it or have filed Income Tax return, then there is no need to panic. But if you are unable to tell the source, then the agency will definitely take action.
When and how much penalty
If you do not give account of cash, then your problems can increase. If your house is raided by the Income Tax Department and a large amount of cash is recovered. Along with this, you are also not able to give correct information about that cash, then you may have to pay a heavy penalty. Up to 137% tax can be imposed on the amount of cash recovered from you. This means that not only the cash you have kept with you, but you will have to pay 37 percent more on top of that.
Keep these things in mind
Let us tell you that you will have to show your PAN card for withdrawing or depositing more than Rs 50,000 at a time in the bank. You cannot make a payment of more than Rs 2 lakh while shopping. For this also you will have to show PAN and Aadhaar. Even if you deposit more than Rs 20 lakh in cash in your bank account in a year, you will have to show PAN and Aadhaar to the bank.
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